Investing
ThredUp surges 16% on better-than-feared results, forecast; results seen as ‘solid’
© Reuters. ThredUp (TDUP) surges 16% on better-than-feared results, forecast; results seen as ‘solid’
By Senad Karaahmetovic
Shares of ThredUp (NASDAQ:) are up over 16% in pre-market Tuesday after the secondhand clothes retailer reported better-than-expected results and guidance.
TDUP reported a of $0.19 on revenue of $71.3 million, beating the average analyst consensus for a loss per share of $0.20 on revenue of $63.1M. The company reported 1.7M active buyers on its platform.
The reported gross margin of 63.1% missed the consensus of 63.5%.
“We are proud to deliver strong Q4 results in what continues to be a highly competitive environment,” said ThredUP CEO and co-founder James Reinhart. “By investing in growth and rigorously managing expenses, we believe we’re well positioned to capture an apparel market recovery as the consumer continues to seek value in 2023.”
For this quarter, the company sees revenue at $72M (up or down $1M) while full-year sales are seen in the range of $310-320M. Analysts were looking for $70M and $301.7M, respectively.
KeyBanc analysts took note of “solid” results, despite a difficult macro backdrop.
“We are encouraged by management’s focus on positive free cash flow via achieving breakeven quarterly adjusted EBITDA in the back half of 2023 along with substantially lower capex requirements but remain Sector Weight awaiting further signs of execution on plan amid a challenging macro environment,” they wrote in a note.
Wedbush analysts highlighted improving visibility.
“With easier compares ahead and macro pressure potentially easing, TDUP could see a strong reacceleration of top-line trends, and we remain encouraged by their confidence in the path to profitability. With the stock trading where it is, we think risk/reward is highly skewed to the upside,” they said in a client note.
Read the full article here
-
Personal Finance7 days ago
Seniors to get moderate cost of living bump in Social Security payments next year
-
Side Hustles5 days ago
Social Security Payments to Increase By 2.5%: What It Means
-
Investing6 days ago
5 Steps to Creating More Inclusive PR Campaigns
-
Investing4 days ago
Half million still without power in Sao Paulo from Friday storm By Reuters
-
Investing5 days ago
Ambani’s Reliance lobbies India on satellite spectrum in new face-off with Musk By Reuters
-
Make Money7 days ago
How Workers Believe the Presidential Election Will Impact Their Careers
-
Investing6 days ago
Pemex’s Deer Park oil refinery scales back operations after fatal accident By Reuters
-
Personal Finance4 days ago
Inflation sees the lowest annual rise since 2021