Luxury retailer The RealReal has laid out its ambitious financial goals for 2025, revealing its focus on growth and profitability. The New York-based company aims to achieve a gross merchandise value (GMV) exceeding $5 billion and total revenues surpassing $1.5 billion by 2025. Additionally, The RealReal plans to reach adjusted EBITDA of over $100 million by the same year.
The RealReal has been making significant progress towards these targets and expects to achieve positive adjusted earnings for the full year of 2024. The company’s CFO, Robert Julian, expressed confidence in reaching these goals, highlighting strong top-line growth, operational excellence, and effective cost management as key drivers.
Despite reporting a net loss of $236 million in the previous year, compared to $176 million in 2020, The RealReal remains optimistic about narrowing its losses as it continues to enhance its financial performance. In its latest earnings update, the company projected a GMV range of $2 billion to $2.1 billion for 2022, with anticipated adjusted EBITDA losses decreasing to between $100 million and $80 million.
These financial targets reflect The RealReal’s commitment to establishing itself as a leader in the luxury retail market. By focusing on expanding its GMV, increasing total revenues, and achieving positive adjusted EBITDA, the company aims to solidify its position as a go-to destination for luxury resale.
Investors and industry experts eagerly await The RealReal’s upcoming Investor Day event, where the company will provide further insights into its Vision 2025 strategy. With its ambitious targets, The RealReal demonstrates its determination to drive growth and deliver value to its shareholders in the foreseeable future. With a strong foundation and a clear vision, the company is well-positioned for continued success in the luxury retail industry.
Helpful links:
1. [The RealReal’s website](https://www.therealreal.com/)
2. [Luxury Retail Market Analysis](https://www.businesswire.com/news/home/20210906005123/en/Global-Luxury-Goods-Market-to-2030-Strategic-Business-Report—Market-Trends-Shaping-the-Future-of-Luxury-Goods-Industry—ResearchAndMarkets.com)
