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Nov. 13, 2019, 9:45 a.m. EST

RealReal says it 'authenticates every single item' in response to report about fakes sold on its site

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By Tonya Garcia

RealReal Inc.'s /zigman2/quotes/212846592/composite REAL -3.55% Chief Executive Julie Wainwright issued a response to a report of sales of counterfeit goods on its site, saying that its authentication process is the most thorough in the market. "We are the only resale company in the world that authenticates every single item we sell," the letter said. In a lengthy explanation, Wainwright described the process of verifying that the luxury goods on its site actually come from the labels they claim. In addition to using technologies like machine learning, the company hires authenticators who often have experience with the brands the company sells, Wainwright said. Moreover, she guarantees that if there is a question, the company will "always make it right." The letter comes days after a CNBC report that analyzed negative customer reviews, including claims that customers purchased fake high-end items. Last week, RealReal reported third-quarter sales that rose 55% and beat expectations. "We believe RealReal's strong AOV [average order value] increase shows the untapped demand for authenticated luxury items, particularly in higher-priced items like watches, jewelry, and handbags, all of which RealReal called out as strengths in the quarter," wrote KeyBanc Capital Markets in a note. KeyBanc rates RealReal stock overweight with a $31 price target. RealReal stock is down 21% for the month to date, but up 7.4% over the last three months. The S&P 500 index /zigman2/quotes/210599714/realtime SPX -0.91% is up 5.5% for the past three months.

/zigman2/quotes/212846592/composite
US : U.S.: Nasdaq
$ 13.84
-0.51 -3.55%
Volume: 4.60M
Sept. 17, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.27 billion
Rev. per Employee
$115,188
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/zigman2/quotes/210599714/realtime
US : S&P US
4,432.99
-40.76 -0.91%
Volume: 3.79B
Sept. 17, 2021 5:25p
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