The RealReal shares tumbled on Friday on the news its finance chief Robert Julian will be stepping down from his role as the company attempts to return to profitability by focusing on the higher-margin portion of its consignment business.
Shares of the luxury resale store fell more than 10% before paring its losses to trade down about 3.6% at US$2.16 in the early afternoon.
The RealReal said Julian would leave the role of CFO on either January 31, 2024, or the date a new CFO assumes the position.
Should a new CFO assume the position earlier than January 31, Julian will serve as an executive advisor to The RealReal until that date, the company added.
He will also provide limited consulting services to the company from February 1, 2024, to June 30, 2024, to help with the transition of his role.
Julian's exit comes as The RealReal is shifting its focus away from unprofitable company-owned inventory and consigned items that sell for less than $100 which it believes will result in a slightly smaller but more profitable business.
It expects to return to profitable top-line growth in the new year, and, as of its second quarterly earnings report in August, is set to achieve adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) on a full-year basis in 2024.
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