CEO Rati Levesque sees a “fundamental change in how people shop for luxury fashion.”
The big luxury houses aren’t the only ones taking advantage of the relative strength of the American market — The RealReal Inc. is also enjoying something of a growth spurt in the secondhand market for high-end goods.
Revenues for the third quarter ended Sept. 30 increased 19 percent to $206 million, better than the 13.4 percent analysts figured on, according to Yahoo Finance.
Those sales translated into a gross merchandise volume of $642 million, up 23 percent from a year earlier.
Adjusted earnings before interest, taxes, depreciation and amortization grew 83 percent to $17 million. And adjusted earnings per share totaled 2 cents, better than the flat performance Wall Street expected.
The stock, which closed out the day down 28 percent for the year so far, perked up 5.3 percent to $11.95 in after-hours trading as investors gave their the numbers their approval.
Rati Levesque, chief executive officer, mustered much more enthusiasm for the results and described it as “another record quarter” with record highs in revenues and GMV.
“Underlying those results is a fundamental change in how people shop for luxury fashion, and our purpose-built platform is helping to drive it,” Levesque said. “Customers increasingly start their journey with us and engage well beyond the transaction, to discover what to buy, to track what they own, and to decide when to sell.
“That is the new operating system for luxury fashion ownership, and that is what we are building,” she said.
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