time to read 1 minutes

When the going got tough, Poshmark failed to get goingINTL

When the going got tough, Poshmark failed to get going

Poshmark’s (POSH) shares took a pretty bad tumble on Friday, sinking as much as 20%, after the secondhand online retailer revealed its latest quarterly earnings.

This was Poshmark’s first earnings report as a public company (so double ouch!). While revenue actually surpassed analysts’ estimates, the sales outlook for the current quarter was so bleak it really put traders off. FYI, the company expects sales in Q1 to fall between $75.5m and $77.5m, which is below previous estimates of around $79m.

Poshmark’s marketplace is similar to that of Etsy (ETSY) and eBay (EBAY) but also competes with secondhand retailers competitors such as StockX and ThredUp.

why it matters
According to Poshmark’s CEO, the fact that some states are experiencing harsher COVID-19 restrictions is heavily impacting demand for apparel. It’s worth keeping an eye on this segment of the retail industry to see how recovery will unravel for it.