Poshmark forecasts holiday-quarter revenue below estimates, shares plunge

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  • Poshmark on Tuesday forecast a downbeat holiday quarter after missing revenue estimates as the company grapples with increased competition in the fast-growing secondhand apparel space.
  • Shares of the company, which went public in January, fell 18% in extended trading, a day after rivals ThredUp and RealReal both beat third-quarter revenue estimates.

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Poshmark on Tuesday forecast a downbeat holiday quarter after missing revenue estimates as the company grapples with increased competition in the fast-growing secondhand apparel space.

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Shares of the company, which went public in January, fell 18% in extended trading, a day after rivals ThredUp and RealReal both beat third-quarter revenue estimates.

With traditional retailers facing a shortage of new clothing at stores, competition to attract customers has intensified among resale platforms that have remained relatively untouched by supply chain issues.

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ThredUp forecast fourth-quarter revenue above estimates and said it was reducing prices to attract customers at a time when traditional clothing retailers were raising rates to counter rising costs and supply constraints. .

Deep pocketed and established apparel brands like Levi Strauss & Company and Urban Outfitters have also started their own vintage businesses, outdoing the competition in the space.

Poshmark, which relies on social media marketing to attract shoppers, has also been hurt by Apple’s new privacy controls, which make it harder for third-party apps to track iPhone users without their consent.

According to Refinitiv’s IBES data, the company forecast fourth-quarter revenue of $80 million to $82 million, compared to analysts’ estimates of $85.2 million.

Poshmark said revenue rose 16% to $79.7 million for the third quarter ended Sept. 30, beating analysts’ average estimate of $82.7 million.

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