The RealReal (REAL) Barclays 11th Annual Eat, Sleep, Play, Shop Conference 2025 summary

Industry trends and market overview

• Luxury resale is experiencing a cultural shift, with 47% of consumers now considering resale value at purchase, similar to luxury auto buying behavior.

• The sector has significant growth potential, with $2B in GMV compared to $85B in annual U.S. luxury purchases and an estimated $200B in untapped supply in consumers' closets.

• 58% of consumers now prefer shopping resale or secondary marketplaces, and the company is outpacing industry growth with 14% GMV growth in Q2 and 20% in Q3.

• The managed marketplace model removes friction for sellers and builds trust for buyers, differentiating from peer-to-peer platforms.

• Inflation and higher primary market prices drive more buyers and sellers to the platform, reinforcing the value proposition.

Growth strategy and supply unlocking

• The growth playbook includes a national sales team, targeted marketing, and a retail footprint, with stores bringing in 25% of new consignors.

• Dropship initiatives and partnerships with international vendors, especially in Japan, are expanding supply without requiring physical presence abroad.

• International expansion is a future opportunity, but U.S. growth remains the top priority due to significant remaining headroom.

• About 50% of new consignors have never sold before, indicating market expansion as well as share gains.

Technology, AI, and operational efficiency

• AI-driven tools like Athena automate intake, authentication, and pricing, processing 27% of items and aiming for 30-40% by year-end, with a path to 100% coverage.

• Athena reduces processing time from 14 to 7 days and increases accuracy, with expansion planned into higher-value categories.

• The platform leverages data from 50 million items to optimize pricing and sell-through rates.