Another fast-growing digital native going public
The Real Real Inc. has set the terms for its initial public offering.
The luxury consignment retailer is offering 15 million shares, expected to price between $17 and $19 a share. The Real Real expects to raise up to $285 million and be valued at about $1.57 billion. Its stock is expected to list on the Nasdaq under the ticker symbol “REAL.”
The Real Real buys and sells women’s and men’s designer fashions, fine jewelry, watches, fine art, and home goods. It stands apart from most other consignment sites in that it takes possession and authenticates every item prior to sale. It operates some 11 consignment offices nationwide, and recently opened its third permanent store, on Manhattan’s Upper East Side. The shop features a curated mix of items, and has gemologists, horologists and authenticators on hand to give customers complimentary valuations on everything from watches to handbags to sneakers.
The Real Real’s move to the public arena comes as resale is booming. According to a study by fashion resale site ThredUP, the resale market generated $24 billion in sales in 2018 and is projected to more than double in five years, to $51 billion. The study found that 64% of women bought or are willing to buy secondhand products.
Similar to many other fast-rising digital natives, The Real Real is still unprofitable. The company reported a net loss of $75.8 million on revenue of $207.4 million in 2018, up from $133.9 million in 2017, after a loss of $52.3 million on $133.9 million a year ago.
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