Poshmark forecasts holiday-quarter revenue below estimates, shares plunge (updated)

Realreal

09/11/2021 21:16

(Adds share movement, background)
    Nov 9 (Reuters) - Poshmark Inc  POSH.O  forecast a downbeat
holiday quarter after it missed revenue estimates on Tuesday, as
the company battles increasing competition in the booming
secondhand apparel space.
   Shares in the company, which went public in January, fell 18%
in extended trading, a day after rivals ThredUp Inc  TDUP.O  and
RealReal  REAL.O  both beat third-quarter revenue estimates. 
   With traditional retailers facing a shortage of new clothing
at stores, competition to attract customers has been
intensifying among resale platforms that have been relatively
insulated from supply chain issues.
    ThredUp forecast fourth-quarter revenue above estimates and
said it was lowering prices to attract customers at a time
traditional clothing retailers have been increasing rates to
counter surging costs and supply bottlenecks.
    Deep pocketed and established apparel brands such as Levi
Strauss & Co  LEVI.N  and Urban Outfitters Inc  URBN.O  have
also launched their own secondhand businesses, furthering
competition in the space.  urn:newsml:reuters.com:*:nL4N2QT32C 
    Poshmark, which relies on social media marketing to draw in
shoppers, has also been hurt by Apple Inc's  AAPL.O  new privacy
controls, which makes it harder for third-party apps to track
iPhone users without their consent. urn:newsml:reuters.com:*:nL4N2PH3PR
    The company forecast fourth-quarter revenue of $80 million
to $82 million, compared with analysts' estimates of $85.2
million, according to IBES data from Refinitiv.        
    Poshmark said revenue rose 16% to $79.7 million in the third
quarter ended Sept. 30, missing analysts' average estimate of
$82.7 million.

 (Reporting by Uday Sampath in Bengaluru;
Editing by Vinay Dwivedi)
 ((UdaySampath.Kumar@thomsonreuters.com; within U.S.+1 646 223
8780; Twitter: https://twitter.com/sampath_uday  ;))