ATRenew (RERE, Financial) saw its stock price drop by 9.4%, losing 38 cents to settle at $3.68. This notable decline reflects a challenging day for the company's shares in the market. Investors will be closely watching how ATRenew navigates the current market dynamics and what strategic measures it might adopt to stabilize and potentially rebound in the coming days.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for ATRenew Inc (RERE, Financial) is $4.99 with a high estimate of $4.99 and a low estimate of $4.99. The average target implies an upside of 37.19% from the current price of $3.64. More detailed estimate data can be found on the ATRenew Inc (RERE) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, ATRenew Inc's (RERE, Financial) average brokerage recommendation is currently 1.0, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for ATRenew Inc (RERE, Financial) in one year is $4.26, suggesting a upside of 17.03% from the current price of $3.64. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the ATRenew Inc (RERE) Summary page.
RERE Key Business Developments
Release Date: May 20, 2025
- Total Net Revenue: RMB4,653.5 million, a 27.5% increase year over year.
- Non-GAAP Operating Income: Over RMB110 million, a 39.5% increase year over year.
- Non-GAAP Operating Margin: 2.4%, up from the previous year.
- 1P Business Revenue Growth: 28.8% year over year.
- 1P2C Revenue Growth: 73.5% year over year.
- Retail Revenue Contribution: 33% of 1P revenue.
- Net Product Revenues: RMB4,260 million, a 28.8% increase year over year.
- Net Service Revenues: RMB390 million, a 14.2% increase year over year.
- Gross Profit Margin for 1P Business: 15.2%, up from 10.9% last year.
- Fulfillment Expenses: RMB430 million, a 38.1% increase year over year.
- Selling and Marketing Expenses: RMB420 million, a 30.4% increase year over year.
- Cash and Cash Equivalents: RMB2.78 billion as of March 30, 2025.
- Store Network Expansion: Net addition of 458 AHS stores year over year.
- Share Repurchase: Approximately 0.4 million ADS for USD1.2 million in Q1 2025.
- Q2 2025 Revenue Outlook: Between RMB4,710 million and RMB4,801 million, a 24.7% to 27.4% increase year over year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Total net revenues for the first quarter exceeded the high end of guidance, increasing 27.5% year over year to RMB4,653.5 million.
- Non-GAAP property income increased by 39.5% year over year to over RMB110 million, with a non-GAAP operating margin reaching 2.4%.
- 1P business revenue grew by 28.8% year over year, with product revenue increasing by over 50%.
- The strategic partnership with JD.com has strengthened, improving the trade-in supply chain and user experience.
- The number of registered merchants in PJT exceeded 1 million, with a double-digit year over year increase in active trading merchants.
Negative Points
- Fulfillment expenses increased by 38.1% to RMB430 million, with non-GAAP fulfillment expenses rising by 40.2%.
- Selling and marketing expenses increased by 30.4% to RMB420 million, with non-GAAP selling and marketing expenses rising by 72.8%.
- Revenue from Apple's official trading business declined year over year due to high base effects from previous pricing strategies.
- The non-GAAP fulfillment expense ratio rose by 0.9% year over year due to increased staff and operational costs.
- Non-GAAP selling expenses ratio increased by 2.2%, driven by higher promotion and advertising expenses.
