FILE PHOTO: A woman walks through Times Square as a screen displays the company logo for Poshmark Inc. during it’s IPO at the Nasdaq Market Site in Times Square in New York City, U.S., January 14, 2021. REUTERS/Brendan McDermid
November 9, 2021
(Reuters) – Poshmark Inc forecast holiday-quarter revenue below estimates on Tuesday, as the company battles increasing competition in the booming secondhand apparel space.
With traditional retailers facing a shortage of new clothing at stores, competition to attract consumers has been intensifying among resale platforms such as Poshmark, ThredUp Inc and ReaReal, that have been relatively insulated from supply chain issues.
Poshmark rival ThredUp on Monday forecast fourth-quarter revenue above estimates and said it was lowering prices to attract customers at a time traditional clothing retailers have been increasing rates to counter surging costs and supply bottlenecks.
Poshmark, which relies on social media marketing to draw in shoppers, has also warned that it would be hurt by Apple Inc’s new privacy controls, which makes it harder for third-play apps to track iPhone users without their consent.
The company forecast fourth-quarter revenue of $80 million to $82 million, compared with analysts’ estimates of $85.2 million, according to IBES data from Refinitiv.
Poshmark said revenue rose 16% to $79.7 million in the third quarter ended Sept. 30, missing analysts’ average estimate of $82.7 million.
(Reporting by Uday Sampath in Bengaluru; Editing by Vinay Dwivedi)
Source: One America News Network
