The insight: The RealReal is upbeat about its prospects as tariffs and the uncertain environment boost resale’s appeal. While the company is not yet profitable, it is winning over more shoppers who see the circular economy as an opportunity to snag a good deal on luxury merchandise.

A record Q2: The RealReal’s GMV and revenues reached record highs in Q2, bolstered by a growing user base and an increase in average order value (AOV).

• The company counted over 1 million active users at the end of the quarter, up 6% YoY.
• AOV rose 8% YoY to $581, which could indicate that shoppers are buying more per order, or are opting for more expensive items.

The big picture: Overall, the conditions are ideal for The RealReal: Many shoppers have been priced out of the luxury market—and will likely stay that way once brands begin to pass tariff costs onto consumers. At the same time, increased financial pressures on consumers make consignment more attractive, thereby giving The RealReal access to more inventory.

• Roughly 1 in 7 shoppers who made a purchase from The Real Real in the 12 months ended June 30 also consigned items, the company said in its 10Q.
• At the same time, 49% of its consignors also bought something from the marketplace in that period—highlighting the potential of the company’s flywheel model.

Our take: Demand for resale is accelerating as consumers look for ways to escape tariffs and find better deals—not to mention shop more sustainably.

• The online resale market is expected to reach $40 billion by 2029, per a report from ThredUp, which would be nearly double its size in 2024.
• While shoppers worried about saving money are unlikely to patronize a luxury-focused resale platform, The RealReal is in a good position to win spending from aspirational customers who are interested in luxury but are otherwise unwilling—or unable—to pay retail prices.