Dive Brief:
- Poshmark last week announced the pricing of its initial public offering of 6.6 million shares of its stock at $42.00 per share, according to a company press release. The company is trading under the symbol POSH.
- After trading opened on Thursday, stock shot up over 140% and traded at $101.50 by close. By Friday the stock price had decreased to $83.20.
- Poshmark has over 70 million registered users across the U.S. and Canada, according to the company . The majority of active users are millennials or Gen Z.
Dive Insight:
Even with a dip on Friday, Poshmark outperformed expectations during its first few days on the Nasdaq.
While the apparel category has struggled during the pandemic and is attempting to bounce back, secondhand sales still may be a strong performer. Poshmark's revenue for the first nine months of the year came to nearly $193 million, up 28% year over year.
The platform's success, along with other resellers like ThredUp "underscores the demand to participate in resale as a seller, which we believe has likely been super-charged by the pandemic" according to MKM Partners Managing Director Roxanne Meyer, in a Friday note.
Over the next five years, more than half of consumers expect to spend more money on secondhand fashion, according to a report released last year by ThredUp, and the segment is anticipated to reach $44 billion in sales by 2029.
Poshmark expanded into the home category in June 2019, and last spring rolled out a Posh Stories feature, allowing users to make and share shoppable content for their listings.
