Marvin Fong's questions to RealReal Inc (REAL) leadership • Q1 2025
Question
Marvin Fong of BTIG questioned the components driving the increase in Average Order Value (AOV) and sought more detail on the margin differences between the three channels within the direct business.
Answer
CEO Rati Levesque attributed the 5% AOV growth to strong sales in higher-value categories like fine jewelry and handbags. CFO Ajay Gopal explained that the 'Get Paid Now' program is inherently more profitable due to a lower payout rate for sellers (e.g., 55% vs. 70% for consignment), though out-of-policy returns remain the largest component of the direct business.