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RealReal Stock Rises After Gucci Deal for Online Shop

RealReal shares rose after the online marketplace for consigned luxury goods unveiled a deal with Gucci to set up an online shop.

RealReal  (REAL) - Get RealReal, Inc. Report shares rose after the online marketplace for consigned luxury goods  said it would launch an online shop that will feature Gucci items.

"Gucci is one of RealReal’s most-in-demand luxury brands year-after-year," RealReal said in a statement.

"Gucci continues to see strong growth in resale demand (up another 19% this year), and is the most in-demand men’s brand for the third year in a row."

The subsidiary of the Paris luxury-goods group Kering PPRUF "also commands strong resale value for consignors, with clothing resale value 2.3 times stronger than average compared to all brands sold on" RealReal, the company said.

There's an environmental aspect to the new shop, RealReal, San Francisco, said in a statement.

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“Together we’re shining a global spotlight on resale that we hope will encourage all consumers to support the circular economy and join us in reducing fashion’s carbon footprint,” said Julie Wainwright, founder and CEO of RealReal.

For all Gucci purchases or U.S. consignments made through RealReal, both companies will plant a tree through nonprofit One Tree Planted to help with global reforestation efforts.

RealReal has said that the brands with the greatest sales growth on its platform include Louis Vuitton, Gucci, Chanel, Hermès, and Bottega Veneta. That's according to a resale report the company released in August.

In August, RealReal stock was higher after the company said that gross merchandise value trends had improved significantly. In addition, the company conducted about 25,000 virtual appointments in the second quarter. 

At last check RealReal shares were trading up 10% at $16.28. The stock has more than tripled off its 52-week low of $5, set in mid-March, and is off about a third from its 52-week high of $24.51, set late last October.

Kering shares were up 5.1% around $698.