In a remarkable display of market resilience, TheRealReal Inc (NASDAQ:REAL)'s stock has surged to a 52-week high, reaching a price level of $5.92, with a notable beta of 2.8 indicating higher volatility than the broader market. According to InvestingPro analysis, technical indicators suggest the stock is currently in overbought territory. This milestone underscores a period of significant growth for the luxury consignment company, which has seen its stock value climb by an impressive 147.06% over the past year, with an even more remarkable year-to-date return of 192.54%. While investors have shown increased confidence in TheRealReal's business model and growth strategy, propelling the stock to new heights, InvestingPro data reveals impressive gross profit margins of 74.42%, though the company remains unprofitable over the last twelve months. The company's performance is particularly notable in the context of the broader market, as it outpaces many of its peers in the retail sector. Discover 13 additional key insights about TheRealReal with an InvestingPro subscription, including detailed financial health scores and comprehensive analysis.
In other recent news, The RealReal posted robust third-quarter results for 2024, with key performance indicators suggesting positive momentum. The company reported a 6% year-over-year increase in Gross Merchandise Volume (GMV) to $433 million and an 11% rise in revenue to $148 million. This growth was accompanied by a positive adjusted EBITDA of $2.3 million, marking the second consecutive profitable quarter.
The RealReal also saw an 8,000 quarter-over-quarter increase in active buyers, reaching 389,000, and a 1.8% year-over-year rise in average order value to $522. Meanwhile, BTIG recently adjusted its outlook on The RealReal, increasing the price target to $4.00 from the previous $3.50, while maintaining a Buy rating for the stock.
The company's third-quarter results also showed a 10.7% year-over-year growth in net merchandise value (NMV), outpacing the gross merchandise value (GMV) growth of 6.2% year over year. The RealReal reiterated its guidance for the fourth quarter of 2024, projecting GMV between $484 million and $500 million, revenue between $158 million and $165 million, and Adjusted EBITDA of $6.5 million to $9.5 million.
In addition, The RealReal reported a 13.7% year-over-year increase in consignment revenue and a 13.4% year-over-year growth in shipping revenue. The company's multi-channel approach, including the opening of new stores, has been a key factor in this success. It also aims to maintain its focus on operational excellence and customer service to drive further growth.
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