The RealReal cashes in on luxury retail revolution, shares climb 12% to four-year high
Oct. 20, 2025 12:40 PM ET
By: Amy Thielen, SA News Editor
Shares of The RealReal (NASDAQ: REAL) reached their highest level in almost four years on Monday, fueled by a weekend article in The Wall Street Journal highlighting the explosive growth of luxury resale platforms to the detriment of established luxury brands.
While names like LVMH Moet Hennessy—Louis Vuitton ( OTCPK:LVMHF) ( OTCPK:LVMUY) have experienced anemic growth this year, sales at The RealReal (NASDAQ: REAL) -- the largest online luxury reseller – are up 10% over the past year and a half, while shares have more than tripled in a year.
The company’s recent quarterly results underscored not only the popularity of luxury resale, but The RealReal’s (NASDAQ: REAL) skill in capturing new members, growth initiatives, and dominance in the category.
For the seventh consecutive quarter, the company’s gross margin exceeded 74%, and is expected to widen further through 2027. Second quarter results not only beat Wall Street’s expectations, but led the company to hike its outlook for the year to levels that exceeded Wall Street’s expectations.
"The second quarter was a breakout performance for The RealReal, further validating the success of our strategic roadmap as strong execution fueled top-line momentum and margin expansion,” CEO Rati Levesque said, adding that the company is leading the cultural shift in luxury resale and helping to define it.
Since reporting Q2 results, shares of The RealReal ( REAL) have more than doubled, adding another 12% on Monday to reach a four-year high of $12.10. |
