Shares of RealReal Inc.
REAL,
+1.44%
slumped 2.4% in morning trading Tuesday, after the online luxury
consignment site warned of a wider-than-expected net loss for the first
quarter, but provided an upbeat outlook on gross merchandise volume
(GMV). The company also said in response to the negative effects of the
COVID-19 pandemic, it has cut its overall workforce by 10% and
furloughed about 15% of its staff, as it has temporarily closed its
stores and luxury consignment offices. The company said it was off to a
"strong start" for the quarter until the spread of COVID-19 led to
shelter-in-place and social distancing mandates. It now expects a
first-quarter net loss of $39.9 million to $38.9 million, compared with
the FactSet consensus for a loss of $30.4 million. Gross merchandise
value is expected to be up about 15% from a year ago to $258 million;
the average estimate of two analysts surveyed by FactSet was $224.5
million, with a range of $156.9 million and $292.0 million. The stock
has shed 56.9% over the past three months, while the S&P 500
SPX,
0.42%
has lost 14.0%.
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