The RealReal's gross profit for the
three
months ended in Mar. 2024 was $107.3 Mil. The RealReal's gross profit for the trailing twelve months (TTM) ended in Mar. 2024 was $393.6 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. The RealReal's gross profit for the
three
months ended in Mar. 2024 was $107.3 Mil. The RealReal's Revenue for the
three
months ended in Mar. 2024 was $143.8 Mil. Therefore, The RealReal's Gross Margin % for the quarter that ended in Mar. 2024 was 74.60%.
The RealReal had a gross margin of 74.60% for the quarter that ended in Mar. 2024 => Durable competitive advantage
During the past 7 years, the highestGross Margin % of The RealReal was 71.40%. The lowest was 57.78%. And the median was 63.70%.
The RealReal Gross Profit Historical Data
The historical data trend for The RealReal's Gross Profit can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of The RealReal's Gross Profit
For the Luxury Goods subindustry, The RealReal's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The RealReal's Gross Profit Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The RealReal's Gross Profit distribution charts can be found below:
* The bar in red indicates where The RealReal's Gross Profit falls into.
The RealReal Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
The RealReal's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $393.6 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
The RealReal (NAS:REAL) Gross Profit Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
The RealReal had a gross margin of 74.60% for the quarter that ended in Mar. 2024 => Durable competitive advantage
The RealReal Gross Profit Related Terms
Thank you for viewing the detailed overview of The RealReal's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
The RealReal is the largest luxury resale platform in the U.S., generating $1.8 billion in 2022 gross merchandise volume and addressing a niche (personal luxury resale) that had previously been serviced by inefficient upscale boutiques and local pawn shops. The firm generates revenue via consignment and first-party sales on its online marketplace, and through direct sales across its brick-and-mortar footprint. With a hands-on approach that actively sources inventory and authenticates every item on its platform, The RealReal is able to justify much higher take rates than peers, working out to roughly 35% of net merchandise value, which excludes returns, cancellations, and first-party sales.
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