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Poshmark Expects Weak Revenue During The Holiday Season

Poshmark shares fall after posting lower-than-analysts forecasts for the fourth quarter

Poshmark cut its forecast for the holiday quarter after it failed to meet analysts’ estimates in the third quarter as it faced increased competition in the second-hand apparel market, which pushed up the company’s shares that went live in January, to tumble 18% in extended trading, a day after its competitors ThredUp and RealReal posted revenue that beat analysts’ expectations for the third quarter.

With traditional apparel retailers facing a shortage of new clothing in stores, competition for customers has intensified among apparel resale platforms that have been relatively insulated from supply chain problems. At a time when traditional clothing stores are raising their prices to deal with rising costs and disruptions in supply chains, it is worth noting that famous clothing brands such as Levi Strauss & Co and Urban Outfitters have launched their own second-hand clothing business, increasing competition in the market.

Poshmark, which relies on social media to market and attract shoppers, has been hit by Apple’s new privacy changes, which have made it more difficult for third-party apps to track iPhone users without their consent. Read more [Apple’s Upcoming Privacy Changes Affect Snap].

Poshmark reported that its revenue during the third quarter ended September 30 increased by 16% to record $79.7 million, but it failed to reach the level of analyst expectations of 82.7 million, and the company believes that fourth-quarter revenue will range between $80-82 million, while analysts expect it will reach 85.2 million.

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