By Sabela Ojea
Shares of RealReal dropped after the luxury reseller guided for lower-than-expected revenue growth for the first quarter and its outlook for 2025 fell short of Wall Street estimates.
The stock was down 7.8% to $7.72 in Monday trading. Shares are down 29% since the beginning of the year, though have nearly quadrupled over the past 12 months.
The San Francisco-based company said it expects revenue of $157 million to $161 million for the first quarter, up from reported revenue of $143.8 million a year ago. Analysts polled by FactSet forecast quarterly revenue of $161.6 million.
For 2025, RealReal guided for revenue of $645 million to $660 million, missing the $658.3 million expected by Wall Street.
The company's outlook comes as it adjusts its fourth-quarter and 2024 guidance amid record high general merchandise value by the end of the year.
"2024 marked an important inflection point for our business," Chief Executive Rati Levesque said. "We achieved positive adjusted Ebitda for the year, and we're just getting started."
RealReal now expects fourth-quarter revenue of $163.1 million to $164.1 million compared to prior guidance of $158 million to $165 million. It expects 2024 revenue of $599.6 million to $600.6 million, ahead of prior views in the range of $595 million to $602 million.
Write to Sabela Ojea at sabela.ojea@wsj.com
(END) Dow Jones Newswires
February 10, 2025 14:05 ET (19:05 GMT)
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