Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

RealReal share price up 40% after IPO launch on Wall Street

The luxury online consignment store's stock surges after going public.

Trader looking at RealReal IPO Source:Bloomberg

The RealReal share price is surging after the pre-owned goods retailer debuted on Wall Street. The corporation says it’s ‘the world's largest online marketplace for authenticated, consigned luxury goods.’

RealReal IPO details

RealReal raised $300 million in funding before the corporation went public. The company's stock symbol is 'REAL'. RealReal’s shares were priced at $20 when the retailer launched its initial public offering (IPO). RealReal stock is now selling for 40% above its listed IPO price.

RealReal thrives by selling affordable and authentic luxury items

RealReal was founded in 2011 by Julie Wainwright. The corporation resells items like clothes and accessories from luxury brands like Gucci and Cartier for a fraction of the original price. Consignors sell their goods on the website and RealReal makes a 35% commission on each sale.

The name of the company comes from the corporation’s pledge that customers are getting authentic items. Wainwright says RealReal’s 100 authenticators ensure that its items aren’t counterfeit.

‘We’re not an easy place for counterfeiters to do business. We confiscate their goods, and then we work with the police, and we let the brands know that this is a counterfeiter,' said Wainwright.

‘It’s a high take rate, but we’re a high-service model. We do all the work for the consignment, we focus on luxury, and we do the authentication,’ added Wainwright.

The corporation's success with selling affordable luxury goods helped RealReal’s Q1 2019 sales reach $69.3 million, a 49% increase from Q1 2018.

RealReal taps into secondhand boom

RealReal is part of a large trend of customers buying pre-owned goods. According to a BCG-Altagamma report, 50% of shoppers in their 20’s bought secondhand items. Bain and Company reports that the secondhand luxury industry is a $25 billion business. Wainwright believes that millennial shoppers want to save money and be environmentally friendly.

‘When we look at where we’re taking share from and share of wallet, it tends to be the fast-fashion market. Our biggest group of customers and now consignors are now millennials. They’re hyper-conscious about sustainability and the impact on the environment of buy-new,’ said Wainwright.

RealReal faces challenges despite success

While RealReal has success with customers, it still isn’t profitable. The company’s 2018 losses were $75 million and Q1 2019 losses were $23 million. Chanel also brought a lawsuit against the corporation, alleging that RealReal was selling counterfeit Chanel handbags. The company denies the allegations.

What’s next for RealReal?

RealReal may expand beyond the US. Wainwright spoke about possible overseas expansion.

‘We have a huge opportunity in front of us. Two-thirds of it’s [chance for expansion] outside the US, so at some point we’ll go overseas but not in the near term,’ said Wainwright.

RealReal has 11 brick-and-mortar stores and plans to open more consignment shops later this year.


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.