RealReal down after cutting 2022 revenue forecast on consumer demand shift

Realreal

10/08/2022 12:29

** Shares of luxury goods resale marketplace RealReal
 REAL.O  down ~10% at $2.73 before the bell
    ** Company on Tuesday after market close said it expects
FY2022 total revenue between $615 mln and $635 mln, down from
prior forecast of $635 mln to $665 mln  urn:newsml:reuters.com:*:nGNX35M5rD
    ** Co-interim CEO and COO Rati Sahi Levesque says there was
a shift in consumer demand from higher-priced items like fine
jewelry and watches to lower-priced items like ready-to-wear and
shoes 
    ** Co-interim CEO and CFO Robert Julian says as a result of
supply shortfall in Q2 and the shift in consumer demand, company
is reducing FY expectations
    ** However, Q2 total revenue of $154 mln came in line with
analysts' expectations, according Refinitiv IBES data
    ** REAL also posts smaller-than-expected Q2 adjusted loss of
40 cents vs estimates for a loss of 44 cents
    ** Nine of 17 brokerages rate the stock "buy" or higher,
seven "hold" and one "sell"; with a median PT of $6.50 -
Refinitiv data
    ** Up to Tuesday's close, stock had fallen ~74% this year

 (Reporting by Ananya Mariam Rajesh in Bengaluru)
 ((AnanyaMariam.Rajesh@thomsonreuters.com ; Twitter: https://twitter.com/AnanyaMariam))