RealReal shares plunge 17% but analysts remain optimistic on apparel recovery

RealReal Inc. REAL, -17.47% stock plunged 17.5% in Tuesday trading after the luxury resale e-commerce site reported second-quarter earnings that missed expectations. Net losses totaled $70.7 million, or 78 cents per share, after a loss of $43.0 million, or 49 cents per share, last year. Adjusted losses of 50 cents per share were deeper than the 48-cent-per-share loss FactSet forecast. Revenue of $104.9 million was up from $57.3 million last year but also missed the FactSet consensus for $108.3 million. Gross merchandise volume increased 91% year-over-year to $350 million. Despite the misses and stock retreat, at least two analyst groups maintained their bullish ratings. "We are encouraged by (1) a rebound in apparel and footwear, which were up +70% y/y, (2) supply growth improving across major markets, (3) sustained demand for higher-priced categories, and (4) ~30% of new consignors acquired via retail stores," wrote Cowen. Analysts there rate RealReal shares outperform with a $23 price target. "Despite the GMV upside, we expect EBITDA numbers are staying put (or potentially coming down a touch) - which will keep this story highly controversial in the near-term," wrote Wells Fargo in a note. Analysts there rate RealReal shares overweight with a $28 price target. RealReal shares have slumped 31.5% for the year to date. The Amplify Online Retail ETF IBUY, -0.42% is up 4%. And the benchmark S&P 500 index SPX, +0.16% has gained 18.2% for the period.