Thursday, May 13, 2021

Newly profitable Poshmark requests its IPO

Must read


Our mission to improve business is fueled by readers like you. To enjoy unlimited access to our journalism, subscribe today.

Poshmark, an online second-hand clothing marketplace, on Thursday filed a initial public offering with US regulators, hoping to spark renewed interest in IPOs now that the company has become profitable.

Founded in 2011, Poshmark reported that revenue for the first nine months of 2020 increased 28% to $ 192.8 million. But perhaps more importantly, as it seeks to entice investors to buy its shares, the company made a profit of $ 8 million after a large loss during the same period last year.

Earlier this fall, Poshmark’s rival, ThredUp confidential filed for an IPO. RealReal, a competitor focused solely on the luxury market, went public in mid-2019, although its shares are below its IPO price, and the company is currently not profitable.

All three are leaders in the so-called re-commerce market, which has exploded as young buyers develop a taste for vintage and second-hand items amid a backlash against waste in the clothing industry. and the need to save money in a tough economy.

A study conducted earlier this year by independent research firm GlobalData and commissioned by ThredUp, found that the US resale market to reach $ 36 billion by 2024, up from $ 7 billion last year. The idea became so popular that some well-established companies, notably Levi Strauss, are get started with their own resale programs.

Poshmark recently launched features to stimulate customer spending and increase the frequency of their purchases. These include its Just Picked feature, which uses artificial intelligence to analyze listings (there were 201 million items listed at the end of its last quarter) and personalize suggestions to customers on what they should buy. . Another novelty: “Dropping Soon”, which allows sellers to market their ads before they go on sale in order to create a buzz.

Poshmark had 31.7 million active users in September, mostly young Millennials and Gen Z buyers.

“Three key trends are shaping the future of retail: The Go Internet, The Go Social and The Go To Occasion. Many of these trends are driven by younger generations who continue to increase their purchasing power as they age, ”Poshmark said in its IPO.

He plans to list stocks on Nasdaq under the symbol “POSH”.

The US stock market has seen a record number of IPO filings this year, investors looking to take advantage of the boom in the stock market to cash in on their investments. Recent news stocks that have skyrocketed include those of DoorDash and Airbnb. But not all IPOs see a so-called “first-day pop”. The award for worst day one performance goes to Wish, an online marketplace, whose shares fell 16% on the first day trading this week.

More must-read stories of Fortune:

- Advertisement -spot_img

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -spot_img

Latest article