RealReal stock plunges after company cuts earnings outlook

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Shares of The RealReal Inc. REAL, -15.51% were sinking more than 11% in after-hours trading Tuesday after the luxury-goods reseller cut its forecast for the full year. The company posted a second-quarter net loss of $53.2 million, or 56 cents a share, compared with a loss of $71 million, or 78 cents a share, in the year-prior period. After adjustments, RealReal generated a loss per share of 40 cents, down from 50 cents in the year-earlier quarter. Analysts tracked by FactSet were anticipating a 47-cent adjusted loss on a per-share basis. RealReal’s revenue climbed to $154.4 million from $104.9 million, while the FactSet consensus was for $154.1 million. Looking to the third quarter, executives at RealReal anticipate $145 million to $155 million in revenue along with a loss of $26 million to $30 million on the basis of adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda). Analysts tracked by FactSet were modeling $164.4 million in revenue and a $21.1 million loss on the basis of adjusted Ebitda. For the full year, executives are targeting $615 million to $635 million in revenue along with an Ebitda loss of $100 million to $110 million. RealReal’s prior forecast was for $635 million to $665 million in revenue as well as an $80 million to $100 million loss on an adjusted Ebitda basis. “Given the sales labor-related supply shortfall coming out of the second quarter and the shift in consumer demand more reflective of our pre-COVID mix, we are reducing our full year 2022 guidance,” Chief Financial Officer Robert Julian said in a release. “However, we are confident about our long-term strategy and prospects.”

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