RealReal stock jumps 9% on higher sales, company sees possible inflation boost

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Shares of RealReal Inc. REAL, -4.34% jumped more than 9% in the extended session Tuesday after the e-commerce retailer of secondhand luxury goods reported quarterly sales that topped expectations, reiterated its guidance for the year, and said it could benefit from inflation hitting new luxury goods. RealReal said it lost $57 million, or 61 cents a share, in the first quarter, compared with $56 million, or 62 cents a share, in the year-ago period. Adjusted for one-time items, the company lost 47 cents a share. Revenue rose 48% to $147 million. FactSet consensus called for a loss of 54 cents a share on revenue of $136 million. COVID-related staff absences impacted its authentication centers early in the year, which delayed processing and launching times, founder and Chief Executive Julie Wainwright said in a statement. But the company continues to see “strong demand in our business despite recent geopolitical events and uncertainty surrounding macroeconomic trends. In fact, as inflation has ramped and prices have increased in the primary (i.e. new goods) luxury market, we believe The RealReal is a demonstrated value option offering unique and highly coveted items in our online marketplace,” Wainwright said. The company reaffirmed 2022 revenue guidance of between $635 million and $665 million. The FactSet analysts expect revenue of $646 million for the year. RealReal stock ended the regular trading day down 4.3%.

This article was originally published by Marketwatch.com. Read the original article here.

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