Fourth-quarter 2021 earnings numbers looked largely positive for resale platform thredUP Monday (March 7), but investors — and even CEO and Co-Founder James Reinhart — understand secondhand is a tough idea to get behind.
The company’s stock has been battered for almost a year since its initial public offering (IPO) last March, dipping from its $20-per-share starting price to $7.55 Monday after the latest earnings report showed an all-time quarterly revenue high of $72.9 million, representing 68% growth year over year.
On top of that, thredUP reported annual revenue of $251.8 million, representing 35% growth year over year; annual gross margin of 70.7%; and gross profit growth of 39% year over year.
The company also had a record number of active buyers with 1.7 million and orders of 1.7 million in the quarter, representing growth of 36% and 69% year over year, respectively. thredUP’s record annual orders of 5.3 million represented growth of 34% year over year.
“The not-so-secret but, I think, often misunderstood economic engine that underlies our model is that most of our clothing is listed on consignment,” Reinhart told investors and analysts on the company’s quarterly earnings call. “This means we have little inventory risk. Our strategy has been developed with a deeply calculated approach about what it takes to build and sustain competitive advantage over time. We believe that every day, our supply advantage increases, our infrastructure moat widens, and the network effects of our marketplace grow.”
thredUP closed its acquisition of Remix in Q4, which is the first step in its international expansion plans. It also and established new Resale-as-a-Service (RaaS) programs with adidas, Crocs and Michael Stars, so there’s an eye on diversification.
“We expect our continued investment in our infrastructure both domestically and internationally will enable us to keep building the foundation for the future of resale on the internet,” said Reinhart in a statement.
From September to the end of October, thredUP and apparel brand Madewell had an in-person pop-up shop in the Williamsburg neighborhood of Brooklyn that sold only secondhand clothes, including denim, dresses, jackets and sweaters.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More