The RealReal Inc. has seen a lag as it implements its higher-margin inventory turnaround strategy under a new chief executive officer.
Upon taking helm as CEO of The RealReal in February, John Koryl implemented a series of changes to help get the company back on track, including cutting about 230 jobs and closing two flagships, in San Francisco and Chicago. Its focus now is on the right product mix.
“During the second quarter, we continued to transition away from company-owned inventory and consigned items that sell for under $100, which are not profitable for The RealReal,” Koryl explained in a press statement. “These actions resulted in higher average order value, a higher gross margin rate, reduced company-owned inventory, and a smaller adjusted EBITDA loss compared to the prior year. We view the shift to a higher gross margin rate as a structural change to our business model.
The company maintained its belief that its higher-value “strategic shift” in inventory will pay off. This runs the gamut of changes, from a 2022 policy update to consignor commission rates, to the recent trial of on-site advertising, as a way to convert billions of website impressions. Analyst are watching how the company takes to the changes.
With a focus on high-margin consignment pieces, The RealReal’s gross merchandise volume decreased 7 percent to $423 million . That being said, active buyers increased 11 percent to 985,000Shares of The RealReal closed at $2.17 per share per data from Yahoo Finance.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
DeSantis Replaces Campaign Manager in Reset of 2024 Presidential BidRepublican presidential candidate Ron DeSantis is making changes to his campaign team and laying off staff as he seeks to revive his struggling presidential campaign.
Weiterlesen »
DeSantis replaces campaign manager in 2024 resetRepublican presidential candidate Ron DeSantis is replacing his campaign manager as the Florida governor continues to reset his stagnant presidential campaign.
Weiterlesen »
Will New Drugs Be a Game-Changer for Appetite Control?New drugs for type II diabetes are producing significant weight loss, but they do not reset the brain's ability to control appetite. Lifestyle changes should be used in conjunction with the drugs.
Weiterlesen »
Boeing aims to launch first NASA crew flight by MarchBoeing has reset its timeline for the Starliner capsule and plans to be ready to fly NASA astronauts by March. The company has incurred $1.5 billion in cost overruns so far.
Weiterlesen »
DC Originally Planned to Reboot Franchise With a 'Flashpoint' MovieStoryboard artist Jay Oliva reveals that a previous version of 'The Flash' was going to introduce a major villain of the DCEU. The film was intended to reset the DC Universe, taking inspiration from the 2011 comic book storyline Flashpoint, where Barry Allen alters reality by saving his mother through time travel.
Weiterlesen »
China expert warns US on 'edge of war' amid mounting challenges with adversaryGatestone Institute senior fellow Gordon Chang discusses China's rising aggression as President Xi Jinping continues to take steps to derail the U.S. on the global stage. Biden energy secretary criticized after secret talks with top CCP official are revealed. The Biden administration's actions fail to deter China's aggression, leading to concerns of a potential war.
Weiterlesen »