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RealReal stock falls despite earnings beat after report of negative customer reviews

RealReal Inc. shares slipped 3.6% in Tuesday trading after a CNBC report that analyzed negative customer feedback. Top complaints, according to the report, are damaged items, poor customer service and fakes. The story comes following the secondhand luxury retailer’s third-quarter earnings in which the company reported a 55% year-over-year sales increase. On the call, RealReal Chief Executive Julie Wainwright talked about the company’s 70-point authentication process. “We’re the only marketplace that authenticates a wide range of consumer products, and I would say without hesitancy… our practices are best-in-class and most importantly they continue to evolve,” she said, according to a FactSet transcript. “They have to evolve because counterfeiters evolve.” Analysts are bullish on the stock, with Cowen saying it is a leader in gathering, authenticating and “single-SKU management.” Cowen rates RealReal stock outperform with a $32 price target. RealReal shares have fallen 12.2% over the past three months while the S&P 500 index is up 22.7% for the period.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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