The US second-hand market value reaches 35 billion US dollars! Poshmark has a poor outlook

Poshmark has beaten analysts’ revenue expectations since going public in January. However, the online seller of used clothing posted a weaker-than-expected sales outlook for the current quarter.

Poshmark shares fell more than 12% in after-hours trading .

In parts of the U.S., apparel demand remains suppressed while coronavirus restrictions remain tight , founder and Chief Executive Officer Manish Chandra said in an interview.

“There are very different behaviors across the country,” Chandra said. “Florida is a strong growth market where customers are searching for clothes and swimwear on Poshmark, while New York is still catching up. So we’re looking at some of the differences across the state.”

Poshmark’s loss narrowed to $4.06 million, or 31 cents per share, in the quarter ended Dec. 31, from a loss of $14.75 million, or $1.20 per share, a year earlier. Adjusting for one-time items, the company earned 5 cents per share.

Revenue rose 27% to $69.32 million from $54.74 million a year ago . That was above the average revenue estimate of $68 million reported by Refinitiv.

Poshmark said first- quarter revenue would be between $75.5 million and $77.5 million , compared with analysts' average estimate of $79.2 million.

“Our platform is super adaptable and flexible, which has made us a growth engine in 2020 compared to many other places that have been suffering,” Chandra said.

Poshmark filed to go public in December 2020 and hit $97.50 per share on its first day of trading on the Nasdaq on Jan. 14. But the stock has been falling since then, hitting an all-time low of $44.11 last Friday. The stock closed up nearly 16% on Thursday at $59.46.

Founded in 2011, the company 's online marketplace for used clothes , shoes and accessories is similar to eBay and Etsy. Poshmark connects buyers with sellers, who typically list items in their own stores and make money by taking a cut of each transaction .

Consumers, especially younger ones, are increasingly turning to these types of internet marketplaces for secondhand goods. A number of players are seeking to gain market share, including luxury consignment site The RealReal, sneaker reseller StockX and virtual thrift store ThredUp, which filed for an initial public offering earlier this month.

Poshmark said it had 6.5 million active buyers in the fourth quarter, up 20% year-over-year. The company defines active buyers as unique users who have purchased at least one item on the platform in the past 12 months, regardless of returns and cancellations.

Cowen previously estimated the U.S. resale market is worth between $30 billion and $35 billion.

USA

Resale Market

Poshmark