© Reuters. ThredUp (TDUP) Rises 16% on Better Than Feared Results, Forecast; results seen as ‘solid’
By Senad Karaahmetovic
Actions of ThredUp (NASDAQ:) are up more than 16% pre-market on Tuesday after the second-hand clothing retailer reported better-than-expected results and guidance.
TDUP reported a loss of $0.19 on revenue of $71.3 million, beating the average analyst consensus of a loss per share of $0.20 on revenue of $63.1 million. The company reported 1.7 million active shoppers on its platform.
The reported gross margin of 63.1% fell short of the consensus of 63.5%.
“We are proud to deliver strong fourth quarter results in what remains a highly competitive environment,” said ThredUP CEO and Co-Founder James Reinhart. “By investing in growth and rigorously managing spending, we believe we are well positioned to capture a recovery in the apparel market as the consumer continues to search for value in 2023.”
For this quarter, the company forecasts revenue of $72 million (a $1 million increase or decrease), while full-year sales range from $310 million to $320 million. Analysts were seeking $70 million and $301.7 million, respectively.
KeyBanc analysts took note of the “solid” results, despite a difficult macro environment.
“We are encouraged by management’s focus on positive free cash flow by achieving break-even adjusted quarterly EBITDA in the second half of 2023 along with substantially lower capex requirements, but we maintain the weight of the sector awaiting further signs of execution on the plan amid a challenging macro environment,” they wrote. in a note
Wedbush analysts highlighted the improvement in visibility.
“With easier comparisons ahead and a potential easing of macroeconomic pressure, TDUP could see a strong reacceleration of major trends, and we remain encouraged by their confidence on the path to profitability. With stock trading where it is, we believe risk/reward is heavily skewed to the upside,” they said in a note to client.
