Shares of The RealReal (REAL) experienced a significant after-hours plunge on Thursday, dropping 10.84% following the release of its first-quarter earnings report and future guidance. The luxury consignment company's stock tumbled despite management's efforts to reassure investors about its full-year outlook.
In its earnings release, The RealReal reported a Q1 EPS of $0.56. However, investors seemed more focused on the company's guidance for the second quarter. The RealReal projected Q2 total revenue between $157 million and $161 million, with Gross Merchandise Value (GMV) expected to be in the range of $476 million to $486 million. These figures apparently fell short of market expectations, triggering the sharp sell-off in after-hours trading.
Despite the negative market reaction, The RealReal's management reaffirmed its full-year 2025 guidance. The company acknowledged uncertainties stemming from tariffs but expressed confidence in its ability to navigate these challenges. However, this reassurance was not enough to prevent the stock's decline, suggesting that investors remain skeptical about the company's near-term performance and its ability to meet full-year targets given the disappointing Q2 outlook.
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