Shares of high-end online consignment retailer The RealReal (NASDAQ: REAL) fell sharply at the open of trading on Nov. 10, quickly losing 13.5% of their value. By 10:30 a.m. EST or so, the stock had pared that loss a bit but was still lower by nearly 5%. The company's after-the-close earnings release on Nov. 9 was the big driver here.
The RealReal provides a platform through which consumers can sell unwanted luxury goods. In the face of the COVID-19 pandemic, with people stuck at home, more consumers have been buying online. But that hasn't translated to increased sales for this company. To put some numbers on that, The RealReal saw a year-over-year revenue increase of 11% in the first quarter, which wasn't materially impacted by the pandemic. And then the bottom fell out, with a 21% revenue decline in the second quarter. That was a period during which many other online retailers were seeing increased sales driven by physical store closures, social distancing, and people working from home.
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Why The RealReal Stock Fell 13.5% at the Open Today