By Nivedita Balu
(Reuters) – Online fashion marketplace Poshmark Inc on Thursday forecast first-quarter revenue below expectations despite beating market estimates for holiday-quarter revenue, sending its shares down 16% in extended trading.
Poshmark, which runs an online marketplace for secondhand goods, saw demand boom as consumers largely shift to secondhand online shopping in the aftermath of the COVID-19 pandemic.
Chief Executive Officer Manish Chandra said searches for summer dresses on the platform surged 200% and those of bathing suits rose 150%. “That tells me that people are ready to go out,” Chandra told Reuters in an interview.
However, Poshmark could face stiff competition from traditional apparel sellers, which expect sales to bounce back, driven by strong pent-up demand as consumers return to stores and look for new styles for summer.
California-based Poshmark, which went public earlier this year, forecast first-quarter revenue between $75.5 million and $77.5 million, implying a growth of 32% to 36% from a year earlier. Analysts were expecting revenue of $79.2 million.
Net revenue jumped about 27% to $69.3 million in the quarter ended Dec. 31, compared with estimates of $68 million, according to IBES data from Refinitiv.
(Reporting by Praveen Paramasivam in Bengaluru; Editing by Shinjini Ganguli)
