Second-hand fashion platform ThredUp has reported a 26.7 percent increase in revenue in the second quarter of the year as the red-hot resale market continues to grow.
For the three months to June 30, the company’s revenue was ahead of expectation, hitting 59.96 million dollars, up from 47.34 million dollars a year earlier, which CEO and co-founder James Reinhart said was “a further proofpoint of secondhand’s strength”.
The San Francisco-based business also reported all-time high active buyers of 1.34 million and orders of 1.22 million in the quarter.
The company’s net loss widened to 14.38 million dollars from 6.66 million dollars a year earlier. Its gross margin expanded to 73.6 percent from 69.7 percent a year earlier.
ThredUp gears up for European expansion
US-based ThredUp has been at the centre of the country’s fast-growing resale market in recent years, and in July announced plans to acquire fashion resale business Remix Global AD in a move that marks its expansion into Europe. The transaction is expected to close in the fourth quarter of 2021.
Reinhart said last month he was “bullish” about “the massive opportunity in the European resale market” and the chance “to build on Remix’s technology and operational expertise to help accelerate its growth”.
In Europe, ThredUp will be competing with the likes of Depop, Vinted and Verstiaire Collective.
In addition to its own platform, ThredUp offers its resale-as-a-service (RaaS) to other companies, and in the past few years has secured partnerships with big-name fashion brands tapping into the resale market, such as Madewell, Vera Bradley, Abercrombie & Fitch, Farfetch, Reebok and Rent the Runway.
“We believe ThredUp is well-positioned to capture growth and fuel the rapidly emerging resale ecosystem,” Reinhart said.
The company expects revenue for the fiscal year 2021 to be in the range of 60 million dollars to 62 million dollars. That guidance is not pro-forma for the acquisition of Remix.