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Ever wondered what your closet would be worth if you tallied it up? The RealReal wants to make that an easy calculation — one that factors into your consignment habits.
Today, The RealReal is launching MyCloset, an AI-enabled feature that helps users not only understand the value of their wardrobe inventory but also track how that value changes — serving as a sort of portfolio management tool for fashion collectors. Users can upload their inventory, track an item’s price and popularity, and see when the item is expected to trend up or down, to inform when (or if) to sell it, giving customers access to the same data the company has. Users can also look up items when deciding whether or not — or when — to make a purchase.
“This tool educates people on what to sell, what to upgrade, what to keep,” CEO Rati Sahi Levesque says. “It tells you, based on the market, what you will get for it. “[Our users] are asking for more information,” Levesque says. “They want to be educated on what holds its resale value and what doesn’t.”
The hope is that it keeps users in The RealReal’s resale ecosystem, rather than competitors’. The company has returned to growth for five consecutive quarters after a rocky period following its 2019 IPO, when The RealReal’s revenues took a pandemic hit. To turn things around, The RealReal began investing in improving its backend operations, focusing on luxury and higher-ticket items; returning to a consignment-based model; and increasing AI integration. The RealReal became profitable in 2023 and has continued to improve its operational efficiency, ending fiscal 2025 up 15% year-on-year, concluding what Levesque called “a year of transformation”.
The RealReal’s first-quarter revenues, announced today, were up 19% year-on-year to $190 million, reflecting this continued progress. Given this, The RealReal is increasing its full-year guidance, and now expects to generate between $769 and $783 million in fiscal 2026.
“We were losing a bunch of money,” Levesque says. “And luckily that’s behind us. That was a hard time in the company.” After making the necessary operational changes, the company is now in a better position to grow, Levesque says.
MyCloset is available to all users, but will be most useful to those with higher-ticket items to sell, given that this is the category The RealReal best caters to. “Are you going to earn the most with us if you sell something under $100? Probably not. Peer-to-peer, right? We’re not the outlet for that,” Levesque says. “But if you’ve got a mid-value to high-end item, you’re going to earn the most with us. The reason why is that the consumer is willing to spend $20,000 on a bag in seconds.”
