Shares of The RealReal (REAL) tumbled 10.84% in after-hours trading on Thursday, following the release of the company's first-quarter earnings report and second-quarter guidance. The sharp decline came despite the luxury consignment company reaffirming its full-year 2025 guidance.

The RealReal reported first-quarter earnings per share of $0.56, but investors seemed more focused on the company's outlook. For the second quarter, The RealReal provided revenue guidance of $157 million to $161 million and projected Gross Merchandise Value (GMV) between $476 million and $486 million. While the company maintained its full-year 2025 guidance, it also noted uncertainties related to tariffs, which may have contributed to investor concerns.

The significant after-hours drop suggests that the market was expecting stronger results or guidance from The RealReal. Despite the company's efforts to reassure investors about its full-year prospects, the immediate reaction indicates skepticism about the company's near-term performance in the face of potential tariff-related challenges and broader economic uncertainties in the luxury resale market.