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Poshmark shares fell more than 11 percent in extended trading on Wednesday after the second-hand retailer said second-quarter sales could be lower than reported in the previous quarter, a sign that growth could start to slow.
The company reported a 42 percent increase in first-quarter sales from a year ago to $ 81million.However, second-quarter revenue is expected to range from $ 79 million to $ 81 million.Analysts are looking for $ 79.3 million, according to Refinitiv data.
Here’s how Poshmark did at the end of March 31, compared to what analysts had predicted using Refinitiv’s survey:
- Loss per share: 33 cents, compared to the 42 cents expected.
- Revenue: $ 81 million, compared to $ 77.2 million expected.
Poshmark’s net loss rose to $ 74.5 million, or $ 1.19 per share, from a loss of $ 11 million, or 89 cents per share, last year. Excluding a one-off charge, it lost 33 cents per share, less than the 42 percent loss expected by analysts polled by Refinitiv.
Revenue rose to $ 81 million from $ 57.1 million a year earlier, higher than analysts had forecast of $ 77.2 million.
Founded in 2011, the company’s online marketplace for second-hand clothing, shoes and accessories, similar to eBay and Etsy, Poshmark connects buyers with sellers, often listing items from their own wardrobes, and generating income by curtailing every transaction.
Younger consumers are leading the change to this type of internet marketplace for second-hand goods. The mention of thrift and consignment stores ranked 10th on the list of teens’ favorite places to buy clothes, up from 23rd a year earlier, according to a two-year Gen Z survey. Of Piper Sandler, published in April. Some people like these stores for bargain prices, while others see them as a way to be more environmentally conscious.
In the first quarter, the number of active shoppers on the site rose 18% from a year ago to 6.7 million.Active shoppers are unique users who bought at least one item from Poshmark in the last 12. Months of the past, regardless of returns and cancellations.
Poshmark continued to innovate and expand into new categories and regions, in the first quarter it launched the pet segment and expanded to Australia, marking its second overseas venture. It was also beginning to allow users to sell and market their products through short video clips in addition to still images.
Poshmark said it expects adjusted EBITDA to be between $ 1.5 million and $ 2.5 million.
“There has been a real meaningful change when people are preparing for the opening,” said founder and CEO Manish Chandra in a telephone interview. “So we are quite optimistic that when people go out, go out, go out, go, go to weddings, the demand for apparel, both on the demand and on the supply side, is accelerating.”
Chandra said searches for “crop tops” have doubled in March from last year. He said the search “Jeans shorts” grew 85% as people visited Poshmark to buy social clothing.
Poshmark shares opened on the Nasdaq on Jan. 14 at $ 97.50 per share. The stock fell, touching an all-day low of $ 36.11 on April 20.The stock was trading Wednesday at about $ 44.22.
Other players in the area, including luxury consignment site TheRealReal, sneaker retailer StockX and virtual reality store Depop, as well as ThredUp StockX last month completed a new round of funding with a valuation of $ 3.8 billion. And is expected to go public later this year
Find all the earnings from Poshmark here.