Poshmark continues to perform well despite 43% year-on-year growth in GMV in the first quarter

Financial report data shows that in the first quarter of 2021, Poshmark's GMV increased by 43% year-on-year to US$441 million, compared with only US$309.3 million in the same period of 2020. It is worth noting that its sales increased by 42% to US$81 million from US$57.1 million in the same period last year, exceeding analysts' expectations of US$77.2 million.

The active second-hand market has led to an increase in the number of active buyers, which has now grown to 6.7 million. But at the same time, the loss rate has greatly expanded, with losses increasing from $11 million in the same period last year to $74.5 million. Poshmark's stock has also been affected by the financial report, and its stock price has fallen 11% since Wednesday.

Shares of ThredUp , another secondhand marketplace, also fell 8% recently. ThredUp is investing in new warehouses and automation to meet the demand it sees from customers and speed up delivery. But that has put pressure on profits.

ThredUp’s net loss widened to $16.17 million, or 86 cents per share, in the period ended March 31, from $13.2 million, or $1.23 per share, a year earlier. Excluding one-time items, the company lost 17 cents per share.

Its revenue rose 15.2% to $55.7 million from $48.3 million a year ago , beating estimates of $48.4 million. The company said its number of active buyers rose 14% year-on-year to 1.29 million, and orders rose 18% to 1.13 million.

“We continue to be optimistic about the long-term growth of resale and are seeing early signals of increased buying enthusiasm as the U.S. economy reopens,” CEO and co-founder James Reinhart said in a statement.

Neil Saunders, managing director of retail at GlobalData, noted that expenses related to ThredUp’s IPO increased in the first quarter and that those expenses would fade over time.

“The pandemic has accelerated interest in reselling apparel…which has surged the number of consumers active in the circular economy, even at a time when overall apparel demand remains suppressed,” Sanders said.

Poshmark

First quarter

Revenue