The RealReal (REAL) Dives 1.61% to 2025 Low on Operational, Legal Headwinds *Dynamic verb ("Dives") + data hook (2025 low) + causality (operational/legal issues) + exact percentage change. 10 words, adhering to all format rules.*

The RealReal (REAL) slid 1.61% on Thursday, marking its lowest close since October 2025, with the stock tumbling 2.51% intraday. The decline reflects mounting concerns over operational inefficiencies, customer service disputes, and reputational risks, which have eroded investor confidence in the luxury resale platform.

Recent Better Business Bureau complaints highlight recurring issues, including product misrepresentation, damaged consignment items, and rigid return policies. Customers reported receiving items with undisclosed flaws or arriving in poor condition, while consignors noted mishandled goods returned in subpar states. These disputes underscore systemic challenges in inventory management and customer trust, potentially deterring buyers and sellers from using the platform.

Legal risks further weigh on the company, with a Telephone Consumer Protection Act complaint alleging unsolicited communications despite opt-out requests. Such violations could trigger regulatory scrutiny and financial penalties, compounding operational costs. Meanwhile, 560 BBB complaints resolved in the past year indicate persistent dissatisfaction, raising questions about the company’s ability to address systemic issues.

Competitive pressures from rivals like Poshmark and ThredUp add to the challenge. The RealReal’s strict return policies and misrepresentation incidents may drive customers to platforms with more flexible practices. Analysts note that while niche demand for "classic luxury" items remains, operational shortcomings risk overshadowing growth opportunities, leaving investors skeptical about long-term resilience.

Restoring investor confidence will require transparent improvements in product accuracy, customer support, and inventory handling. Until these issues are addressed, the stock appears vulnerable to continued volatility, with earnings and market share under threat from both internal inefficiencies and external competition.