Added to YB: 2025-04-17
Pitch date: 2025-04-17
REAL [bullish]
The RealReal, Inc.
+83.15%
current return
Author Info
No bio for this author
Company Info
The RealReal, Inc. operates an online marketplace for resale luxury goods worldwide. It provides a range of product categories, including women’s fashion, men’s fashion, jewelry, and watches.
Market Cap
$1.2B
Pitch Price
$5.34
Price Target
10.00 (+2%)
Dividend
N/A
EV/EBITDA
30.76
P/E
-13.79
EV/Sales
2.11
Sector
Specialty Retail
Category
turnaround
REAL: A Misunderstood Tariff Beneficiary Hiding in Plain Sight
REAL: The RealReal’s turnaround and domestically sourced consignment model provide zero direct product-tariff exposure after a greater-than-50% drawdown from recent highs. Cost efficiencies lifted gross margin 1,675 basis points from FY22 to FY24 and produced positive adjusted EBITDA and free cash flow, while secondhand luxury is growing faster than traditional luxury. Continued operating leverage could support a price above $10 over time, though near-term timing is highly uncertain.
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