The RealReal I.P.O.: Secondhand Fashion Goes Mainstream

It’s never been easier to shop another woman’s closet.

Since the recession, there has been a boom in online marketplaces that let shoppers buy and sell all manner of used clothing and accessories, from Louis Vuitton handbags to Old Navy sweaters. Sites like the RealReal, Poshmark and ThredUp are betting this budding business, which some are calling re-commerce, is on the cusp of explosive growth.

Friday represented a milestone for the commerce of secondhand-fashion as the RealReal began trading on the Nasdaq stock market. The company priced its stock at $20 a share on Thursday, which would raise $300 million in its initial public offering. The firm’s shares, listed under the ticker “REAL,” were up nearly 40 percent after noon in New York. It is the latest this year in a series of I.P.O.’s of companies backed by venture capital.

“I absolutely think there’s a shift in how certain cohorts are spending and thinking about spending on fashion,” said Liz Dunn, founder of Pro4ma, a retail analytics company. The listing “tests whether or not this is a fad or if it has longevity,” she added.

The company, founded in 2011 by Julie Wainwright, its chief executive, says it is the biggest online marketplace for authenticated, consigned luxury goods, and counts Gucci, Cartier and Hermès among its top-selling designer brands. The RealReal, which had $207 million in revenue last year, has said that it is benefiting from a growing acceptance of buying pre-owned goods and increasing sales of luxury goods online.

“We really believe in where we’re going and the value of the company,” Ms. Wainwright said in an interview on Friday, adding that she and her investors did not sell any shares in the offering. “It’s just the beginning and hopefully, it’s a great branding event.”

The RealReal has carved out a lucrative niche by employing more than 100 experts, including gemologists and horologists, to authenticate the luxury goods it carries, to reassure buyers worried about counterfeits. The company, which has three stores and mostly trades in women’s goods, has also made it seamless to sell items and even conducts “white glove” home visits for certain sellers. It says it has paid consignors $988 million since its inception.