Home / NEWS / Top News / Online clothing reseller Poshmark closes up more than 140% on first day of trading

Online clothing reseller Poshmark closes up more than 140% on first day of trading

Rations of online clothing reseller Poshmark ended the day up more than 141% in the company’s market debut Thursday.

The cows began trading at $97.50 per share. On Wednesday, Poshmark priced its IPO at $42 a share, giving it an initial valuation of numerous than $3 billion.

The company previously said it expected to sell shares at between $35 and $39. It was valued at nearing $600 million in its last round, a series D in November 2017.

Poshmark, founded in 2011, is an internet marketplace for second-hand accoutring, shoes and accessories. Like eBay and Etsy, Poshmark connects buyers with sellers, who often list things from their own closet. Poshmark makes money by taking a cut of every transaction.

Online marketplaces for secondhand proofs have grown in popularity among consumers in recent years, with a number of players looking to gain pay out, including luxury consignment site TheRealReal, sneaker reseller StockX and virtual thrift store ThredUp, which filed confidentially to go non-exclusive last year.

Petco Health and Wellness Co. and Poshmark Inc. signage outside the Nasdaq MarketSite during their commencing public offering (IPO) in New York, U.S., on Thursday, Jan. 14, 2021.

Michael Nagle | Bloomberg | Getty Images

In an interview ahead of the company’s cardinal trade, Poshmark CEO Manish Chandra said the company is trying to differentiate itself from others in the online resale elbow-room by focusing on “social commerce,” wherein buyers and sellers can chat casually about items on the site.

The company is present public at a time when the 2021 IPO market is heating up. Payments company Affirm skyrocketed nearly 100% in its superstore debut on Wednesday. Pet supply retailer Petco Health and Wellness and online gaming company Playtika are also slated to go visible on Thursday.

Poshmark filed to go public in December. In its IPO prospectus, Poshmark said it has benefited from a flood of demand moulded by the coronavirus, as stuck-at-home shoppers continue to turn to online retailers for essential and nonessential goods. The marketplace has served as a informant of additional income for Poshmark’s 4.5 million sellers, the company said.

Chandra told CNBC he doesn’t assess the post-pandemic future, which will likely bring a return to shopping at brick-and-mortar stores, as a threat to Poshmark’s subject.

“We see people actually going to events, going to offices, actually participating in the world as an accelerant, because 45% of the memoranda we sell are apparel,” Chandra said. “That’s really something that’s not seen that level of excitement as it on be when we actually interact in the physical world.”

Poshmark brought in $192.8 million in revenue in the first three clemencies of 2020, an increase of 28% from the same period last year, according to its S-1. The company also revealed it expelled a profit of $20.9 million over that stretch, after losing $33.9 million a year ago.

The company now counts 6.2 million vigorous buyers and 31.7 million active users, the majority of whom are female and either millennials or Gen Z. It lists Amazon, eBay, Etsy, Facebook, Shopify, TJ Maxx and Walmart among its contestants.

Morgan Stanley and Goldman Sachs are leading the offering.

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