Harsh winter and pandemic weaken Poshmark first quarter gross sales forecast
By Nivedita Balu and Praveen Paramasivam
(Reuters) – Poshmark Inc forecasted decrease than anticipated first-quarter income on Thursday, saying the web second-hand items market was struggling to ship resulting from a harsh winter and restrictions on the COVID-19 pandemic.
Shares of Poshmark, which went public earlier this 12 months, fell 15% amid prolonged buying and selling. They’d gained round 42% at Thursday’s shut from their preliminary public providing value.
Poshmark has benefited from a rising curiosity in second-hand procuring on-line, because the financial fallout from the pandemic that has ravaged companies and led to large job and pay cuts has made individuals extra cautious about their jobs. bills.
The corporate mentioned robust demand continued into January, however February gross sales declined in some states resulting from a extreme winter storm that ravaged Texas and neighboring states. He additionally blamed the pandemic for inflicting delays within the supply of some orders.
“A few of our prospects have had their packages delayed by a weekend, some have seen their package deal arrive 4 weeks late. So we had a better cancellation fee than typical,” mentioned the supervisor. financier Anan Kashyap throughout a outcomes name.
Nonetheless, Poshmark expects its gross sales to rebound as extra individuals enterprise out and seek for new types for the summer season.
Managing Director Manish Chandra mentioned searches for summer season attire on the platform rose 200% and searches for swimwear rose 150%. “It tells me individuals are able to exit,” he advised Reuters in an interview.
The California-based firm forecasted first-quarter income of between $ 75.5 million and $ 77.5 million, up 32% to 36% from the earlier 12 months. Analysts anticipated income of $ 79.2 million.
Internet revenue jumped about 27% to $ 69.3 million within the quarter ended Dec.31 from a 12 months earlier, from estimates of $ 68 million, in keeping with IBES information from Refinitiv.
(Reporting by Praveen Paramasivam in Bengaluru; Modifying by Shinjini Ganguli)