Less than two years into the role, The RealReal chief executive John Koryl has exited the company and will no longer serve on its board, the resale platform announced Monday morning.
In his place, the company has appointed president and chief operating officer Rati Sahi Levesque, who will assume the position effective immediately. Levesque helped found the company in 2011 and was its first employee. In her tenure, she has held leadership roles across the organisation, from sales and merchandising to marketing.
Under Levesque and former chief financial officer Robert Julian â the duo served as interim co-CEOs after founder Julie Wainwright resigned in 2022 â The RealReal set out on a path to profitability that included drastic changes to its commission structure that favour high-value items like jewellery and Hermès handbags.
In early 2023, the company brought in Neiman Marcus alum Koryl to seal the deal on narrowing losses. Koryl continued to iterate on the commission structure and helped revamp customer service offerings. In the fourth quarter of 2023, the company finally accomplished EBITDA (earnings before interest, tax, depreciation and amortisation) profitability, the first time since its IPO in 2019.
In fiscal 2024, The RealReal expects to post adjusted EBITDA of between $4.5 million to $7.5 million, it said as part of its CEO announcement Monday. Thatâs compared to an adjusted EBITDA loss of $55 million in 2023 and loss of $112 million in 2022.
But as The RealReal reduced losses, its topline shrank. Last year, it posted $1.7 billion in gross merchandise value, reflecting a 5 percent drop from the year prior. This year, itâs expecting annual GMV of about $1.8 billion.
âRati and the leadership team have the full confidence of the board and are well-positioned to drive the business forward,â Karen Katz, chairperson of the board, said in a statement. âWe wish John well as he begins his next chapter and takes time to focus on his family.â
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The fashion resale company finally became profitable last year, but it was at the cost of losing consignors who complain that reselling is no longer as lucrative as it once was on the platform.
