UBS remains neutral. In an Oct. 29 note, analysts Jay Sole and Mauricio Serna said they were “slightly more confident” that The RealReal was heading in the right direction, viewing its third-quarter pace as a signal that its self-help efforts assistance is manifested. modest profits for its P&L.” They also note that The RealReal’s improved social media engagement is paying off and attribute changes in social media performance to changes in marketing spending under new CMO Sri Batchu and creative director Kristen Naiman , both of whom have held their positions for less than a year.

Lévesque underlined this social push. “During the recovery, we may have been a little quiet in asserting our role in the (luxury resale) industry,” she said. “In 2024, we began leveraging social media platforms like TikTok and Instagram to engage with customers and potential consignees. We recently doubled down on social content that makes complex topics like authentication and sustainability more relevant. These efforts have generated some of the company’s highest engagement rates on posts, she told investors.

The news of Lévesque’s appointment surprised Brooks, he says, but he adds that he doesn’t believe The RealReal would make the change unless they believed she was the right fit. Sole and Serna are also ambivalent about the nomination, noting that it is “somewhat concerning” given that it was unexpected. That said, they recognize that Lévesque’s 13-year tenure with the company – as well as the fact that she helped found it – is a source of confidence.

Regarding his strategic plans as CEO, Lévesque assured investors that no major changes were on the agenda. She highlighted changes she implemented two years prior as interim CEO, including reducing startup fees; leave direct activity; and remove unprofitable categories. “I consider this to be sticky and not changing,” she said. “The return to growth is a big topic of discussion for us internally. »

Going forward, the main challenge will be finding more supply, which Brooks is confident The RealReal can achieve by refocusing on its core, high-margin consignment segment; the overhaul of its commissioning structure; and reorganizing its sales force and recruiting processes (which, it says, results in a broader offering of better quality items).

“Supply is pretty healthy right now,” Levesque said on the call, referring to The RealReal’s growth plan that combines sales, marketing and retail stores. Gopal attributed much of The RealReal’s success since the start of the year to the increased supply resulting from this combination. Lévesque added that as CEO, she will continue to think about new ways to acquire supplies.

Brooks reports that The RealReal’s sales decline from 2022 to 2023 was calculated, as part of the strategy to strengthen its core consignment business by reducing inventory purchases. He says this has positioned the brand well for revenue growth.

“As we enter the final quarter of the year, we are encouraged by the momentum we are seeing in the business. It is clear that our growth plan is working, with evidence in terms of revenue and bottom line,” said Lévesque. “I’m excited about the future, but right now we’re focused on executing to close out 2024.”

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