Affluent shoppers may be cutting back on new designer splurges, but they’re snapping up secondhand treasures. The RealReal, the largest online marketplace for authenticated luxury
goods, says third-quarter gross merchandise value jumped 20% to $520 million, with revenue up 17% to $174 million — both record highs.
Losses also
widened, climbing to $54 million from $18 million a year ago. Still, the company raised its full-year forecast, now projecting about $2.1 billion in gross merchandise value. Investors liked what they
saw, with the stock rising 17%, its highest level in a year.
CEO Rati Levesque credits sharper marketing and a focus on what the company calls
“flywheelers” — customers who both buy and consign. “We are changing the way people shop,” she said in announcing results. “Going forward, we see an opportunity to
build deeper consignor relationships, enhance tools and insights, and expand our AI initiatives.”
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The number of RealReal’s active buyers climbed
7% to just over 1 million, as its 40 million members — many millennials and Gen Z — continue to redefine what luxury looks like. Searches for handbags in "fair" condition — code for
“lived-in” — rose 32%. Fine jewelry is the fastest-growing category, and first-time watch buyers surged 46%, with heritage brands leading the way. Search volume for wedding dresses
soared 247%, suggesting shoppers are turning to resale for major life moments.
“In a year defined by instability, AI blurring real and synthetic, and
trends flattened by social media, consumers rejected uniformity,” Levesque noted in the company’s trend report. “They’re seeking pieces that feel real, unfiltered, and
unreplicable.”
That craving for authenticity is reshaping how people shop, even for new items. They’re thinking about resale all the time, the
company said, as both a practical and a fashion choice.
Levesque said new marketing tactics are fueling growth, including AI tools that sharpen organic and
paid social campaigns targeting potential consignors. The company is also using in-store events to recruit sellers. Its 18 brick-and-mortar locations now account for nearly a quarter of new
consignors. There, customers can meet with experts — including gemologists and handbag specialists — who provide valuations that help build trust.
As luxury brands wrestle with shrinking margins and soft demand, The RealReal’s momentum shows resale has become more than a way to stretch a clothing budget — it’s a
new form of fashion credibility.