Despite the company's strong fourth-quarter results, ThreadUp stock fell on Tuesday. The company exceeded sales expectations, posting sales of $81.39 million versus the expected $80.33 million, an increase of 15% from the previous year. The company also predicts that the global used market could be valued at more than $350 billion by 2027.
William Blair Consumer Research Analyst Dylan Carden joins Yahoo Finance to discuss the company's performance in a consumer environment where discounts on branded and quality products are a “winning formula.” He also cites the impact of reduced prejudice against second-hand goods, especially among younger generations.
Carden also opined on ThreadUp's chances of surviving recession and inflationary pressures, saying, “They've shown during the pandemic that they're not necessarily macro-resistant. The business is similar to other apparel retailers. “It's simply because they're selling so much volume.” So as long as consumers decide whether to buy Lululemon (LULU) at Lululemon or Lululemon at ThreadUp, the same discretionary overhang will impact this business. Other than that, it's not anti-economic. ”
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Editor's note: This article was written by Nicholas Jacobino
