Online luxury resale marketplace The RealReal Inc. announced that veteran Rati Sahi Levesque is taking over as CEO, effective immediately. The move marks the latest leadership change in a series of moves over the past three years.

Levesque, a co-founder and longtime executive, succeeds John Koryl, who joined in February 2023. He has since left his role and board seat. The company did not disclose additional details about Koryl’s departure in its October 28 announcement.

Karen Katz, board chair of The RealReal, praised Levesque’s track record with the company, stating she “has been pivotal in formulating and executing the recent strategic shifts that have propelled the company on its path to profitability.”

The leadership transition comes as The RealReal reports preliminary third-quarter results that beat expectations. Key performance metrics — including gross merchandise value (GMV) and total revenue — outpaced forecasts, leading the company to raise its full-year outlook. The RealReal ranks as No. 721 in Digital Commerce 360’s Top 1000 list of North American online retailers by web sales.

Levesque’s path to CEO at The RealReal

Levesque, The RealReal’s first employee, brings 13 years of experience in senior roles across sales, merchandising, product, technology, operations, and marketing, according to the company.

Most recently, she held the roles of president and chief operating officer. She also served as interim co-CEO for eight months alongside then-chief financial officer Robert Julian after founder and CEO Julie Wainwright stepped down in 2022. Levesque now adds a board seat to her roles as CEO and president.

In her first statement as CEO, Levesque affirmed her commitment to driving profitable growth.

“The luxury resale market is vibrant and growing, and there is a significant opportunity to leverage our powerful brand and our valued community of consignors and buyers to enhance the client experience and accelerate profitable growth,” she stated. “I am a passionate believer in our vision to fuel a more sustainable and circular fashion industry by providing outstanding luxury goods to our customers.”

The RealReal earnings and financial momentum

The RealReal’s focus on profitability accelerated in 2022, with adjustments to its commission structure to prioritize higher-margin luxury categories like jewelry and handbags.

In early 2023, the company brought in Neiman Marcus and ecommerce veteran John Koryl to spearhead its turnaround strategy.

Under Koryl’s leadership, The RealReal achieved adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) profitability in Q4 2023. That was the retailer’s first profitable quarter since its IPO in 2019.

For the full year 2023, The RealReal reported a net loss of $168 million. That was down from $196 million in 2022, though profitability efforts slowed top-line growth. GMV — a measure of the total value of goods sold on the platform — decreased by 5% year-over-year to $1.73 billion, and revenue dropped 9% to $549 million.

However, recovery signs have strengthened this year. In the second quarter ended June 30, 2024, GMV and revenue grew 4% and 11% year-over-year, respectively. Meanwhile, the company’s net loss narrowed to $17 million from $41.3 million the previous year. Consignment revenue — a core growth metric for luxury resale — rose 17% year-over-year.

The company’s Q3 2024 preliminary results project GMV of $433.1 million, exceeding prior guidance of $410 million to $430 million. Revenue is expected at $147.8 million. That would be above the forecasted range of $135 million to $142 million, for the three months ended September 30, 2024.

“Our growth playbook, which is centered on unlocking supply, is working with proof points in both top line and margin metrics,” Levesque said in a statement. “The RealReal is positioned well as the leader in luxury resale with significant room to grow. Our strong third-quarter results are an important step as we focus on growing our business profitably.”

For the full year, the company now anticipates GMV between $1.81 billion and $1.826 billion. That is up from prior guidance of $1.79 billion to $1.82 billion. It forecasts revenue between $595 million and $602 million, up from $580 million to $595 million.

The RealReal is set to release its full Q3 2024 earnings report on Nov. 4.

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