Prime Highlights:
ThredUp reports Q4 sales of $66.7 million to $67.2 million, surpassing its initial forecast of $58-$60 million.
Gross margin improves to 79.5%-80.4%, exceeding previous projections.
Key Background:
ThredUp, the leading online resale platform, has released preliminary financial results for the fourth quarter of 2024, exceeding its earlier projections and demonstrating strong growth. For the quarter ending December 31, 2024, the company reported total sales between $66.7 million and $67.2 million, a notable 9% increase compared to the previous year. This figure surpasses the company’s earlier forecast of $58 million to $60 million, marking a successful quarter for the online retailer.
In addition to surpassing its sales expectations, ThredUp also posted impressive gains in key financial metrics. The company’s gross margin exceeded guidance, improving from 78.5% to between 79.5% and 80.4%. Moreover, ThredUp’s adjusted EBITDA margin—another critical measure of profitability—rose to between 6.4% and 6.9%, far exceeding the previously anticipated range of 1.0% to 2.0%.
James Reinhart, co-founder and CEO of ThredUp, attributed the company’s better-than-expected performance to several strategic initiatives. Notably, ThredUp’s increased focus on its U.S. business and the enhancement of its platform through AI-driven product improvements helped fuel growth. The strong financial results were also bolstered by increased operational efficiencies, leveraging the company’s investments in marketplace infrastructure over the past year.
The results reflect ThredUp’s continued efforts to capitalize on the growing demand for sustainable fashion, as consumers increasingly seek alternatives to fast fashion. ThredUp’s ability to achieve significant margin growth, despite challenges faced by the broader retail sector, highlights the resilience of its business model and its competitive position in the resale marketplace. Looking ahead, ThredUp remains optimistic about its continued growth and will likely focus on further strengthening its product offerings, particularly through technology innovations, to sustain its momentum into 2025 and beyond.
