The RealReal (NASDAQ:REAL) released its first-quarter 2020 results after market hours on Wednesday, revealing low double-digit growth in several key line items.
The luxury fashion consignment specialist managed to grow revenue by 11% on a year-over-year basis to $78.2 million. On gross merchandise value (or GMV, defined by the company as "the total amount paid for goods across our online marketplace in a given period") that rose 15%. Non-GAAP (adjusted) net loss deepened to almost $33.8 million, or $0.39 per share, from the Q1 2019 loss of $24.4 million.
This meant a mixed quarter for The RealReal. The company's revenue fell short of the average analyst estimate of $81.3 million, but the net loss was narrower than the expected $0.42 per share.
Like many other businesses, particularly in the consumer goods sphere, The RealReal has struggled in the face of the economic downturn caused by the SARS-CoV-2 coronavirus. Through mid-March, the company says, year-over-year GMV growth was above 30%; after that, it turned sharply negative, declining by roughly 40% to 45%.
Encouragingly, The RealReal added that both GMV and customer traffic trends "have improved modestly." It did not, however, provide more detail. Still, the company is battening down the hatches while the outbreak persists.
"Faced with the unknown duration of the pandemic, we've focused on reducing operating expenses to weather these new challenges and preserving liquidity to ensure we are well positioned for the future," management said. That future is uncertain for The RealReal; in mid-March, it pulled both its Q1 and full-year 2020 guidance.
On Wednesday, The RealReal's shares dipped by 2.5% while the main stock indexes generally rose.