The RealReal appointed Rati Sahi Levesque as chief executive officer after the abrupt termination of John Koryl. Levesque, the company’s first employee in 2011, had been president and chief operating officer.
She is also a key architect of the struggling company’s turnaround strategy, which is beginning to pay off. The circular fashion pioneer also announced preliminary results for the third quarter, all ahead of consensus expectations.
The San Francisco-based company says gross merchandise value for the quarter rose to $433.1 million, total revenue climbed to $147.8 million, and its adjusted earnings, before income taxes, advanced to $2.3 million.
While analysts were surprised by Koryl’s departure, Levesque’s appointment seems positive. “Levesque had a critical role in developing the RealReal’s current strategic playbook, which is bearing fruit,” writes Mark Altschwager, an analyst who follows the company for Baird. “We would not expect major changes to company strategy with the leadership transition.”
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In the announcement, Karen Katz, chair of the company’s board, said the new CEO “has been pivotal in formulating and executing the recent strategic shifts that have propelled the company on its path to profitability. Rati’s commitment to the brand, along with her comprehensive understanding of the company, its market opportunity, and the luxury resale landscape, make her the right leader to take The RealReal into our next stage of profitable growth.”
The RealReal also raised its forecast for the coming months, citing changes in the consignor commission structure and better marketing to potential consignors.
The company is also looking to drum up sales in cause-related efforts, partnering for the second time with Conservation International to peddle clothing owned by 230 influential women. Those include a marigold Marc Jacobs pantsuit consigned by Kate Moss, a white trench coat by The Row from Julianne Moore, and a Comme des Garçons bubble dress from Natasha Lyonne.
As part of the collaboration, The RealReal says it will donate $25,000 to Conservation International, which helps protect oceans, forests and other ecosystems. The donation underscores the tech company’s role in protecting the environment: On average, Americans buy 53 new clothing items each year, with 95% of it thrown away.