Rafael Henrique | LightRocket | Getty PicturesPoshmark's income topped analysts' estimates, in its first monetary report since going public in Janu
Rafael Henrique | LightRocket | Getty Pictures
Poshmark’s income topped analysts’ estimates, in its first monetary report since going public in January. However the on-line vendor of secondhand clothes issued a weaker-than-expected gross sales outlook for the present quarter.
Poshmark’s inventory tumbled greater than 6% in after-hours buying and selling.
Founder and Chief Government Manish Chandra mentioned in an interview that demand for attire remains to be suppressed in elements of the U.S., the place tighter Covid restrictions stay in place.
“Completely different elements of the nation are behaving fairly otherwise,” Chandra mentioned, citing Florida as a powerful development market the place prospects are looking out Poshmark for clothes and bathing fits, whereas New York remains to be catching up. “So, we’re accounting for the state-wide variations.”
For the quarter ended Dec. 31, Poshmark’s loss narrowed to $4.06 million, or 31 cents per share, from a lack of $14.75 million, or $1.20 per share, a yr earlier. After adjusting for one-time objects, the corporate earned 5 cents a share through the quarter.
Income climbed 27% to $69.32 million from $54.74 million a yr earlier. That was larger than the typical income estimate of $68 million, reported by Refinitiv.
For the primary quarter, Poshmark is looking for income to fall inside a spread of $75.5 million to $77.5 million. Analysts had been calling for $79.2 million on common.
“Our platform is tremendous adaptable and versatile,” Chandra mentioned. “That has allowed us to be a development engine in 2020, in comparison with numerous different locations which have suffered.”
Poshmark filed to go public in December and opened its first day of buying and selling on the Nasdaq on Jan. 14, at at $97.50 per share. The inventory has fallen since, hitting an all-time intraday low of $44.11 final Friday. Shares closed Thursday up practically 16%, at $59.46.
Based in 2011, the corporate’s on-line market for secondhand garments, footwear and equipment is akin to eBay and Etsy. Poshmark connects consumers with sellers, who typically listing objects from their very own closet. And it makes cash by taking a lower of each transaction.
Shoppers, particularly youthful ones, are more and more turning to these kinds of web marketplaces for secondhand items. Various gamers wish to achieve market share, together with luxurious consignment web site TheRealReal, sneaker reseller StockX and digital thrift retailer ThredUp. The latter filed for its IPO earlier this month.
Cowen & Co. has beforehand estimated that the resale market within the U.S. is valued at $30 billion to $35 billion.
Discover the total earnings press launch from Poshmark right here.