I know for a lot of investors, that isn't quite the deal-breaker that it can be for myself and I'm increasingly trying to get over it. I will also be following them from quarter-to-quarter. It gets into some of the economics that you alluded to. They've won up this by automating one of the most expensive parts of the resale process for any online fashion retailer, and that's photography. I actually love the fact that ThredUp to this point at least has stayed relatively independent, because it allows them to partner with more and more of these traditional retailers as opposed to being pigeon helped to one. I'm going to read you some stats from the S-1, for those of you who are interested in companies that have a focus on sustainability. Pros of Selling on ThredUp When you think about the breadth that retailers like Walmart have and the scale that they can have to push people who are budget conscious toward resellers as opposed to buying new, especially given the trends in fast fashion that I think a lot of younger consumers are more and more aware of, it's a natural expansion. 2. ThredUp's mailing address is 969 BROADWAY SUITE 200, OAKLAND CA, 94607. How does an online secondhand shop work, you may wonder. Not so anymore. That is increasingly trying to do the right thing, but it's challenging, because the vast majority of thrifts or recycling, upselling, it all exists in person, and this is a generation that likes things to be seamless, likes things to be digital or more accustomed to making online purchases. Asit, as always, thank you so much for joining me for the conversation. We welcome your feedback. Latest ThredUP Official Outages. View institutional ownership trends. Aug 17, 2019, 7:32 AM A ThredUp sorting facility in Phoenix. It becomes a challenging business model to create. My kids, again, this younger generation, challenged me a couple of times [laughs] over the last several years, "Dad why are you buying this new? What did you see when you were looking through the financials? To use the service, I ordered a Clean-Out kit from the site, picked it up from my mailbox, filled it with clothes, and scheduled a USPS pickup at USPS.com online. What Is ThredUP? Thrift & sell women's and kids' clothes online. What have I done with my life? Auto-buy is available for items currently in another customer's cart. It makes shopping so simple and so easy and I am convinced it's because of that focus on automation that management has. You'll also get a tax receipt. In the past three months, ThredUp insiders have sold more of their company's stock than they have bought. 9 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for ThredUp in the last year. It ends up being a pretty good thing for the environment. When we were actually talking about it, I think it's a bad company on that day. Thredup aside from being a Lularoe and Century 21 landfill is also scamming sellers with unbelievable scamming dirt low payoffs not to mention that, eventually Thredup takeover/owns the sellers inventory as their own with no pay back to the seller. There are currently 4 hold ratings and 5 buy ratings for the stock. The partnership fits into Target's broader sustainability initiatives, including Target Zero, a new label in stores and online that points out products or packaging designed to be refillable, reusable or compostable. I think it was 22%, maybe two years ago. There are also a few other programs that reward you for cleaning out your closet, and a few that make the process as easy as ordering a bag online, filling it up at home, and scheduling a pickup. Please log in to your account or sign up in order to add this asset to your watchlist. Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower. Any thoughts on this, Emily, or anything that you saw, that caught your eye? Fill up your kit. I'd like to receive the free email course. Part of it may be the allocation of resources in these companies, which is I'm going to call it backward. How Low Can Walgreen's Boots Alliance Go? But the other big risk that I see personally is, I just wonder about what happens to discount retail. The big-box retailer previously launched and then shut down a test in 2015 with the online thrift shop. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. See what's happening in the market right now with MarketBeat's real-time news feed. This is my ThredUP Review. Should I buy or sell ThredUp stock right now? But if anyone has poked around on ThredUp's website, I'm not sure if they had the same reaction that I did, which was, you mentioned the photography that goes into all of these outfits. The company boasts a rigorous screening process for its products, and it strives to only sell the highest-quality items. Everything is there, from discounts to various filters and promotions. 354 Days since last incident. According to this famous banker, you must move your cash before July 26, May 10, 2023|markets.businessinsider.com, Receive TDUP Stock News and Ratings via Email. Which takes us to this equation, we should talk about the financials just a bit. We can talk through the business cycle for ThredUp. I can attest from having friends that are a bit younger than me, and Emily Flippen being one. Maternity. This simply means that they've got a little bit less of a margin in the current assets, like cash inventory, to cover obligations that are due in one year. So it's off brands, even the Targets, the Walmarts of the world, or TJMaxx [TJX], Burlington, all of these businesses that make money by going after thrifters and playing into this experience of finding exciting thrills while you're just treasure hunt, that's the word I'm looking for. It's the right thing to do from a humane and ecological perspective, but it's not always easy when you live in an urban center with no personal transportation. The company reported ($0.19) EPS for the quarter, topping analysts' consensus estimates of ($0.20) by $0.01. This does not drive our decision as to whether or not a product is featured or recommended. In their S-1, they're offering documents for their IPO. We joke about it seeing it on a small scale with these creators on YouTube who are clearly very talented because they have the ability to immediately pull-up an item of clothing out of a mystery box and know what they can get for it. When you look at your closet and you have too much stuff in it that you're trying to get rid of, you want to do the right thing, you don't just want to dump in the garbage. It looks like someone took a dry cleaning business [laughs] and pulled it up three stories. Revenue is scaling, but Emily, as you point out, it's not really dropping to the bottom line. thredUP Reviews - 5,943 Reviews of Thredup.com | Sitejabber You also don't have to deal with the legwork that platforms such as Poshmark and eBay require. It really is a business that benefits from the learning ecosystem that it creates based on the number of items that it brings in. We highlight products and services you might find interesting. This is where you can find some awesome pieces before someone else snatches them up! Flippen: It is a nice name. You won't need to find a bag or box, and aside from the actual act of going through your closet, all the work is done by a couple of clicks online. To power the initiative, ThredUp has raised $100 million in a new funding round, to go with a previously undisclosed $75 million from last year. For me, since my focus is largely on low-maintenance recycling, earning a few bucks here or there is just a bonus. Thredup selling is a journey.a very confusing journey. That's right -- they think these 10 stocks are even better buys. ThredUP's program is also unique in its flexible options. They have spent a lot of money to develop software which gets better and better. I remember thinking in my mind that I thought Walmart was going to make a play to acquire ThredUp or to maybe integrate ThredUp more closely in its business. What they did was in the second quarter of last year, ThredUp decided to start incentivizing buyers, incentives, promotions, discounts to make sure that they didn't lose customers during the pandemic. I think some companies are changing plans and staying private at a smaller interval than they did. Some items are from Target's private labels, such as kids' clothing brand Cat & Jack, or its limited-time designer collaborations, such as one with Lilly Pulitzer in 2015, and others are from luxury brands not typically sold by Target. 2023 CNBC LLC. Up to 90% off est. It's going to start trading any day. ThredUp has received no research coverage in the past 90 days. I feel like it's the least you can do if you're going to ask us to give you money. Target has a new landing page on resale site, ThredUp, which features items from its private labels and limited-time designer collections along with select items from luxury brands. I would never want to believe [laughs] or not that being more old school. Your email address will not be published. ThredUp Unveils New Platform And $175 Million In Funding As - Forbes Homebuilder Stocks Steady; Can They Stay That Way? Earnings for ThredUp are expected to grow in the coming year, from ($0.76) to ($0.52) per share. There are some big changes coming to the ThredUp platform starting in Mid October 2022.Here's how you can get the most out of ThredUp in the meantime and wha. When I think about the risks here, I feel less worried than I did when even looking at, oh, not the throughout Poshmark, I feel terrible. The company is a retailer. But if you think you might go public and you've been around since 2009, it's [] you along the way to bulk up your reporting processes, to bulk up your controls, to make sure that if you ever decide that hey, the market's great, let's go get some funding and go public, you will look pretty good on paper to an auditor. There's nothing too unusual there. It allowed shoppers to get Target credit for gently used items that ThredUp was willing to resell. She declined to share financial terms of the deal. It's not for lack of trying. But if you think that might be an eventuality, why not go ahead and take that cost upfront and build out these controls. I send them a kit of my clothing. It resells second hand clothes from over 35,000 brands, discounted to up to 90% off retail prices. What guidance has ThredUp issued on next quarter's earnings? It's sort of like Poshmark or eBay except you can send all of it off at once, and they take care of the actual selling: inspecting them, professionally photographing them, listing them, and shipping them. This is an idea that I feel like it may take some time to develop, but over the long run the market is there, the product is good, the technology they bring to the table is pretty impressive; it's a company you can visualize getting into steady profits, steady cash flow generation a little easier than some other e-commerce platforms that we've looked at. How do I clear out that closet? Get 35% off your first thredUP order today & enjoy: Over 35,000 brands, from Gap to Gucci. The company earned $75.92 million during the quarter, compared to analyst estimates of $72.41 million. What's going on here is COVID-19, which impacted the company's revenue growth. In my opinion, despite their unique business model, they are still relevant to think about customer acquisition costs. Last year, they had -$19.1 million in operating cash flow, which means they burned through about $19 million in their operations. Because thredUP lists items from thousands of different brands, sizes may vary. 57.37% of the stock of ThredUp is held by institutions. You can put those two together and say the picture is really not that bad, but we'd love some more information to understand these numbers just a bit better. There's only, I think, so much space though, for online resale of used clothing, if it's not the luxury segment. They put it on sale basically, and as those items are purchased, then I'll get a payout. It exists with just you or I. Sign up for our newsletter to get the latest on the culture & business of sustainability delivered weekly to your inbox. The consensus among Wall Street research analysts is that investors should "moderate buy" TDUP shares. I'm not even sure if I should be mentioning this problem anymore, because it has become so pervasive in virtually every company we see go public. thredUP Review: Is It A Good Option To Sell Clothes? - Well Kept Wallet ThredUP Reviews: Tips for Finding the Good Stuff Faster - Rain on a Tin But in case it wasn't completely obvious, a lot of what they're selling are items that have been, you could say, moved up, recycled up the value chain, threaded up, and they're essentially giving new life to millions of items of clothing that people are looking to get out of their closets. Place the shipping label on the box or bag and drop it off with FedEx or USPS. Im not the person to keep an ey, I first bought these during lockdown and theyve, Do you have a Yoto player? Since the vast majority of these sales happen in person, I worry a little bit about long term what ThredUp is able to gain in terms of market share for this industry. Finding a way to monetize those cohorts, the people that they've already spent money on to acquire, even better than what they are doing today, retaining them in a stronger way in their second year. That's what management has indicated in the S-1 in their narrative, that COVID impacted sales in these various ways. All rights reserved. *Average returns of all recommendations since inception. This is done on pattern recognition. Cost basis and return based on previous market day close. This is a secondary income stream or revenue stream. While they are aware of these issues and they're looking to remediate them, I'm definitely a little bit more aware of the fact that ThredUp, alongside virtually every other company I've looked at over the past year, just can't get their internal controls right, and I hate it. How do I do well in the environment? Sign up for free newsletters and get more CNBC delivered to your inbox. But is ThredUp the next RealRealor the next Poshmark? Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. We're going to talk about another e-commerce reseller that's headed to the public market over the hopefully somewhat near future, ThredUp. View analysts price targets for TDUP or view top-rated stocks among Wall Street analysts. If the item is purchased by the customer, your auto-buy won't go through. Overview thredUP has a rating of 3.15 stars from 5,943 reviews, indicating that most customers are generally satisfied with their purchases. We've talked about Poshmark in the past. I thought that was really cool, and they're doing hundreds of thousands of high-quality photos continuously, 24/7, without the need for professional photographers. It really makes the resale process feel less like I'm reaching into somebody's closet and pulling something random out, and more like I'm making a genuine, almost like new purchased on a perfectly legitimate website. A Division of NBCUniversal. A full transcript follows the video. Sharma: I think so too. ThredUp updated its second quarter 2023 earnings guidance on Tuesday, May, 9th. This is a problem that seems to have persisted. By clicking Sign up, you agree to receive marketing emails from Insider What I liked about this is when you compare this to other competitor, and maybe we're picking on Poshmark [laughs] today, we talked about them a lot. Reinhart got the idea for ThredUp after realizing he had a closet full of clothes he did not want to wear and could not sell. ThredUp is looking to help investors capitalize on the multibillion-dollar-a-year opportunity in digital resale and thrift. Service 640 Value 679 Shipping 658 Returns 468 Quality 616 To be accepted, they have to show no signs of wear (pilling, fading, shrinkage), damage, or alterations. Nearly Half of Warren Buffett's $366 Billion Portfolio Is Invested in Only 1 Stock, 3 Ways to Grow $100,000 Into $1 Million for Retirement Savings, Alphabet, Amazon, Tesla, and Nvidia Have Split Their Shares: These 4 Companies Should Be the Next Stock-Split Stocks, Retirees in These 12 States Risk Losing Some of Their Social Security Checks, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. As we talk about the business today, I think investors will find that that's a trend underlying a lot of the themes of this episode is sustainability. Get this delivered to your inbox, and more info about our products and services. You can send items to sell, opt to have them recycledor rerouted back to you if they're not accepted, or have the company donate $5 per bag to a charity if you use just their Donation Kit. Please know that we don't accept items without a size printed on the . From a business perspective, I think I have a lot of respect for the time and the energy and the work that goes in behind the scenes to make ThredUp even exist. Gross merchandise volume, this is again, the total amount of dollars that's transacted over an e-commerce platform during a given period. They indicate in their prospectus that these two groups are adopting second hand faster than any other age group. Sharma: For sure. ThredUP Review: Is It Worth It for Making and Saving Money? What Investors Need to Know About ThredUp | The Motley Fool My Honest ThredUp Reviews (Buying + Selling) | ClothedUp Today, I'm joined once again by Motley Fool Analyst Asit Sharma. Put simply, Thredup is an online thrift store (or consignment store) where users can buy used clothing online at a discounted price. Export data to Excel for your own analysis. Their TDUP share price forecasts range from $2.00 to $8.00. For retailers, resale is a way to get in front of Gen Z and millennial shoppers who enjoy the "treasure hunt" and green aspects of thrifting, said Ashley Helgans, an equity research analyst who follows the sector for Jefferies. Today is Tuesday, March 23rd, and I'm the host of this Consumer Goods focused episode, Emily Flippen. If you're looking to get the most money possible for high-end items, it's probably not the most lucrative option. ThredUp is listing on the Long Term Stock Exchange, which is designed to promote sustainable principles and a long-term focus among investors and businesses. This is Millennials and Gen Z's who are shifting their preference from new clothes toward resale. It's actually concerning to me because what it says to me that it is, in order to grow revenue, they need to grow customers, but they're not doing a great job of engaging existing customers, which is a little bit of a concern, especially when you see the significant fall off, and it's not just 2020 where we see that, it's 2019, 2018, 2017. Then, since I sent in some relatively high-end items using the Standard option, I waited to see if ThredUp would list or responsibly recycle them (I chose not to have them sent back if they weren't sold). Learn More. Looking at accounting and internal controls, financial reporting, all that came later and they decided they would take advantage. ThredUp has also struck profit-sharing deals with retailers like Walmart and Madewell, which cross-list items on their own websites. If you look at their current assets versus their current liabilities, this ratio dropped from a really healthy 2.1 times last year, to 1.2 times by the end of 2020. For the last year, I've spent more time trimming the fat going through my small New York City closet, packing bags, and schlepping clothes in Ubers and city buses all across the city to sell or donate than probably any other activity. They think that this newest type of distribution center, which is so highly automated, is going to help keep pushing those gross margins. About on par for the course of what I expected in the business, we have a rapidly growing industry, but again, an industry that doesn't seem to be able to generate any movement on the bottom line, so this is not a profitable business. It's really easy to get a SKUs just by putting a device [laughs] at a barcode. In other words, being able to really efficiently figure out through automation, automated software, etc., what items will sell, how to present those items, how to manage that inventory. Let's back up a little. This solves the couple of problems I just talked about. People have been slower to adopt it, but I think we want ThredUp themselves, that they do less than I think 0.1% of all of the potential resold clothes in the United States go over their platform. Expands Its Resale Program Enabled by thredUPs Resale-as-a-Service, ThredUp Inc. (NASDAQ:TDUP) Stocks Shoot Up 31% But Its P/S Still Looks Reasonable, Why Secondhand Clothing Is Cool -- For Your Wallet And The Planet, ThredUp Faces Inventory Overhang And Consumer Credit Availability Questions, American Eagle Celebrates Earth Day With the Unveiling of RE/AE, a Digital Resale Shop Enabled by thredUPs Resale-as-a-Service, thredUP to Report First Quarter 2023 Financial Results on May 9, 2023, thredUP's 11th Annual Resale Report Reveals Consumers Continue to Embrace Secondhand Amid Economic Uncertainty, ThredUp Inc. (NASDAQ:TDUP) Q4 2022 Earnings Call Transcript. Flippen: Completely agreed. When you scroll through the site, unlike looking through Etsy, unlike looking through Amazon or Poshmark or any of these other sites where you're getting all of these different backgrounds, all of these different lighting situations, you can't really quite tell what is what, having all of the presentations exactly the same, on the same mannequin all your size. It does skew female, which again, you would expect, but the one thing I didn't expect was household income. The company then prices and lists these clothes . But at the same time, if you're a young person, maybe you're living a very digital-centric lifestyle. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. They show that actually the newer distribution centers have an appreciably better average contribution profit per order. I think maybe that's a great opportunity for them.