Online clothing retailer Poshmark filed its IPO prospectus Thursday after making over $ 30 million in profit for the past two quarters.
Poshmark was founded in 2011 and is an Internet marketplace for used clothing, shoes and accessories. Like eBay, Poshmark connects buyers with sellers who often list items from their own closets. The company makes money by cutting back on every transaction.
Poshmark’s filing lands in the rounds of investors after the IPOs of DoorDash and Airbnb, which are also market trades, led to huge first-day pops last week, possibly indicating the public market’s appetite for the business model. Discount online retailer Wish followed suit this week with its IPO despite falling out the window of its stock price.
Poshmark’s revenue increased 28% to $ 192 in the first three quarters of 2020. 8 million out of $ 150. 5 million in the same period last year. It swung to a profit of $ 20. 9 million over this route after losing $ 33. 9 million a year ago.
Gross volume of goods, a key measure of the total dollar value of goods sold online, was negatively impacted in the first quarter due to the coronavirus pandemic. It rose only 9% in the first three months of the year, but recovered to 42% in the second quarter when buying and selling activities resumed. The company also cited its growing number of active buyers, which doubled in June from two years ago.
Like many online retailers, Poshmark said it is benefiting from a flood of demand generated by the coronavirus as local governments ordered people to stay indoors and close retail stores. The marketplace also served as an additional source of income for Poshmarks 4. 5 million sellers, the company added.
Poshmark said, however, that Covid-19 remains a risk due to the economic impact on consumers and uncertainty about the stability of the overall economy.
« Responses to the COVID-19 pandemic such as extended work from home policies, quarantines, closings and travel restrictions could further depress demand for the products sold on our platform, » the prospectus reads.
The filing provides an initial glimpse into Poshmark’s financial data after the company confidential filed for an IPO in September. It is planned to trade on the Nasdaq under the symbol « POSH ». «
Poshmark said it now counts 6. 2 million active buyers and 31. 7 million active users, most of whom are female and are either Millennials or Gen Z. It lists Amazon, eBay, Etsy, Facebook, Shopify, TJ Maxx, and Walmart among its competitors.
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World News – US – Online Thrift Store Poshmark files are released after consecutive profitable quarters
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