Secondhand luxury retailer The RealReal jumps almost 50% after IPO

Shares of secondhand luxury retailer The RealReal jumped almost 50% in the company’s first minutes of trading Friday after raising $300 million in an initial public offering.

The shares jumped from an IPO price of $20 apiece Thursday to almost $30 in morning trading on the Nasdaq under the symbol REAL, giving it a preliminary market value of $2.49 billion…

Founded in 2011 by Julie Wainwright, The RealReal is a primarily online marketplace for authenticated luxury goods, selling high-end brands such as Gucci and Cartier. The company employs more than 100 experts to make sure that the luxury goods it puts up are the real deal and not counterfeits. It’s a strategy that led the online marketplace to $207.4 million in revenue last year.

The company hopes to be on the forefront of changing tastes. The $24 billion secondhand retail market is projected to outgrow fast-fashion retailers such as H&M by 2028, according to a report by fellow reseller ThredUp. Resale is also expected to grow from 20% of the market to 45% by 2023.

“When we look at where we’re taking share from and share of wallet, it tends to be the fast-fashion market,” Wainwright said in an interview on CNBC’s “Squawk on the Street ” on Friday. “Our biggest group of customers and now consignors are now millennials. They’re hyper-conscious about sustainability and the impact on the environment of buy-new.”

Young shoppers are increasingly looking for discounts and sustainability in their fashion, and they’re not afraid to buy secondhand to get them. A recent BCG-Altagamma report showed that more than 50% of consumers considered members of Gen Z, those born since 1997, have bought or sold items secondhand. Among The RealReal’s own sellers, 56% mentioned environmental reasons or extending luxury items’ lifespans as reasons they sold on the site, and among consumers considered to be millennials that number goes to 64%, according to the company’s filing

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