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ThredUp Bets Big on Live Selling as Outlook Dims

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ThredUp Bets Big on Live Selling as Outlook Dims

The secondhand platform’s CEO, James Reinhart, told WWD about how he caught the live shopping bug.

As cofounder, chief executive officer and driving force of ThredUp Inc., James Reinhart is used to being a pioneer.

And now — as Wall Street wonders over the company’s number, dealing it a 36 percent stock decline on Thursday — Reinhart is looking to take secondhand to the still-unestablished frontier of live selling online.

In essence, the CEO caught the live-selling bug and is betting big that his company can grow through a concept that has taken off in China, but so far has failed to engage U.S. shoppers.

Even QVC Group, the spiritual home of live selling in the U.S., emerged from bankruptcy just in August and is working to find its way forward in the category.

For now, Wall Street is holding way back, with the stock down 79 cents in midday trading to $1.40, leaving the company with a market capitalization of $184 million.

ThredUp’s revenues rose 7 percent to $88.2 million for the third quarter ended Sept. 30. The active buyer count rose 16 percent to 1.8 million. Losses widened to $5.5 million from $4.2 million a year earlier.

But for the fourth quarter, revenues are expected to come in at $77 million to $79 million, a 2 percent drop at the midpoint, where analysts were looking for an 8.2 percent increase, according to Yahoo Finance.

Dylan Carden, an analyst at William Blair, cut his rating on the stock to “market perform” from “outperform” as the outlook disappointed.


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