[ad_1]
Shares of ThredUp Inc. opened 30% above the listed price when they debuted on Friday, an early sign that investors continue to be bullish on second-hand retail online.
The Oakland, Calif.-Based retailer’s stock started trading at $ 18.25, after being pegged at $ 14, which was the high end of its previously announced range. At quote price, ThredUp, which sold 12 million shares, raised $ 168 million for a valuation of about $ 1.3 billion.
ThredUp will use the profits to grow the business, including adding new categories, and making new investments in the company’s operating platform and technology, co-founder and chief executive James Reinhart said on Friday. The initial public offering is “just another validation of the market opportunity, and ThredUp is playing in the bigger and fatter part of the market at our price,” he said.
ThredUp, which sells women’s and children’s clothing, reported $ 186 million in revenue last year, a 14% jump from the previous year, according to a filing with the Securities and Exchange Commission. The company lost $ 48 million last year, compared to a loss of $ 38 million in 2019.
The company said it had 1.2 million active buyers at the end of last year, up 24% from the previous year. On average, these buyers visited ThredUp six times per month and placed 3.2 orders in the year. The company defines active buyers as customers who have made at least one purchase in the past 12 months. “Customers continue to engage with our platform and continue to shop at higher rates,” said Reinhart. “I think it shows remarkable resilience.”
[ad_2]
Source link