Luxury brands confront increasing rivalry from the surge in secondhand market sales.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 19 2025
0mins
Source: SeekingAlpha
Growth of Luxury Resale Market: Luxury resale platforms like The RealReal and Fashionphile are experiencing significant growth, with sales increasing by about 10% on average, while new luxury goods sales from major brands have stagnated for six quarters.
Changing Consumer Behavior: Younger consumers, particularly Gen Z and millennials, are shifting their spending from new luxury items to pre-owned goods, influenced by economic factors and a desire for value, leading luxury brands to reconsider their strategies.
Analyst Views on REAL
Wall Street analysts forecast REAL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for REAL is 17.00 USD with a low forecast of 15.00 USD and a high forecast of 20.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
7 Buy
2 Hold
0 Sell
Strong Buy
Current: 16.240
Low
15.00
Averages
17.00
High
20.00
Current: 16.240
Low
15.00
Averages
17.00
High
20.00
About REAL
The RealReal, Inc. provides an online marketplace for authenticated, resale luxury goods. The Company provides a platform for consumers to buy and sell their luxury items. The Company offers products across multiple categories, including women's and men's fashion, fine jewelry and watches. The luxury designers on its online marketplace include Cartier, Chanel, Christian Dior, Gucci, Hermes, Louis Vuitton, Prada, Rolex, Yves Saint Laurent, Tiffany & Co. and Van Cleef & Arpels. It operates neighborhood retail stores, which are typically 1,800 to 3,500 square feet, with items for sale reflecting a selection of the Company's online assortment. In addition, it operates several larger-footprint flagship stores in Los Angeles, California and New York, New York.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
