Home Business Attire shortages to drive bumper vacation gross sales for secondhand retailers By...

Attire shortages to drive bumper vacation gross sales for secondhand retailers By Reuters

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© Reuters.

By Uday Sampath Kumar

(Reuters) – Newly listed secondhand attire retailers ThredUp and Poshmark are anticipated to forecast robust end-of-year gross sales as a scarcity of recent clothes at shops pushes buyers to contemplate thrifting as an choice to fill their vacation purchasing baggage.

Attire had the very best on-line out-of-stock ranges amongst U.S. retail sectors within the run-up to the vacation season, Adobe (NASDAQ:) Analytics stated in October.

These shortages are anticipated to drive extra folks to secondhand clothes firms corresponding to Poshmark Inc, ThredUp Inc and ReaReal, which aren’t as affected by world provide chain points as they get their inventory primarily from the closets of American households.

“Stock is scarce proper now. Customers are going to buy the place they discover stock to ensure they’ve issues in time for the vacations,” stated Jessica Ramirez, retail analyst at Jane Hali & Associates.

THE CONTEXT

Secondhand retailers have seen a blistering tempo of development over the previous couple of years as eco-conscious Gen Z and millennial shoppers more and more discover it trendy to purchase used merchandise and in the reduction of on their environmental footprint.

(GRAPHIC: Thrifting increase – https://graphics.reuters.com/USA-RETAIL/egvbkmgexpq/chart.png)

The scale of the market is barely anticipated to get larger. Greater than a 3rd of buyers say they’re possible to purchase second-hand attire this vacation season, with that quantity rising to 50% for folks underneath the age of 40, based on a survey of U.S. buyers carried out by Accenture (NYSE:).

THE FUNDAMENTALS

* Vacation-quarter gross sales are anticipated to rise 22.9% for Poshmark and 53.3% for RealReal (NASDAQ:), based on IBES information from Refinitiv

* For the reporting quarter, Poshmark is predicted to report income of $82.7 million, whereas RealReal is predicted to report $113.3 million and ThredUp $61.8 million

(GRAPHIC: Gross sales of main U.S. secondhand attire retailers – https://graphics.reuters.com/POSHMARK-RESULTS/zdvxonrgjpx/chart.png)

* All three firms are anticipated to report losses on a per share foundation

WALL STREET SENTIMENT

* Poshmark has a median value goal of $43, ThredUp $28.50 and RealReal $22

* All three shares have a median “purchase” ranking on Wall Avenue

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