Poshmark's $1.2 bln sale lifts second-hand retailers, online fashion cos

Realreal

04/10/2022 14:16

** Shares of second-hand retailers and online fashion cos
rise in premarket trade after South Korean e-commerce company
Naver Corp  035420.KS  to buy U.S. fashion resale platform
Poshmark Inc  POSH.O  in a $1.2 bln deal
    ** Rival ThredUp Inc  TDUP.O  soars ~10% to $1.9 and
RealReal Inc  REAL.O  rises ~6% to $1.52 before the bell
    ** Shares of online styling service firm Stitch Fix  SFIX.O 
and clothing rental firm Rent the Runway  RENT.O  jumps ~5% to
$4.1 and $2.3, respectively
    ** Online clothing subscription service for kids Kidpik
Corp's  PIK.O  shares up ~1% at $1.56 in premarket trading
    ** Shares of online fashion retailer Revolve Group  RVLV.N 
rise ~3% to $23.20 before the bell 
    ** Wedbush analysts say this deal may have created a "floor"
for other e-commerce companies and resale competitors 
    ** Jefferies says the bid for POSH by Naver shows that
resale is a fast-growing and attractive industry with internet
retail valuations having sold off meaningfully 
    ** Shares of POSH up ~13% at $17.67 and is set to open at a
near nine-month high
    ** YTD, up to Monday's close, TDUP down ~86%, REAL had
fallen ~88%, SFIX tumbled ~80% and RENT fell ~73% 
 (Reporting by Ananya Mariam Rajesh in Bengaluru)
 ((AnanyaMariam.Rajesh@thomsonreuters.com ; Twitter: https://twitter.com/AnanyaMariam;))