Latest news with #ThredUp
Forbes
4 hours ago
- Business
- Forbes
The Price Revolution: How Economic Reality Is Redefining Resale
(Photo by AAron Ontiveroz/The Denver Post) The romantic notion of resale as a treasure hunt for vintage gems has shifted. What we're witnessing instead is the emergence of resale as the ultimate discount channel, where consumers hunt for deals on everyday brands rather than one-of-a-kind finds. From Curation to Calculation The evolution tells the story. Resale began as Hollywood glamour—think Madonna's eclectic style in "Desperately Seeking Susan" or Carrie Bradshaw's vintage discoveries. This was fashion as self-expression, where secondhand meant distinctive. The 2010s digitized this experience through ThredUp, The RealReal, and Poshmark, but still positioned resale through the lens of sustainability and unique discovery. That era is changing. According to Circana, a data and technology company, one-third of consumers purchased apparel from online resale sites in the past 12 months. Their primary motivation? Price. Half of resale shoppers made purchases specifically because items were good deals. Meanwhile, only 23% were seeking hard-to-find pieces—less than half the number chasing discounts. This represents a seismic behavioral shift: consumers are predominantly shopping accessible brands on resale platforms. In fact, more consumers claimed to be shopping on resale for Mass/Specialty brands (34%) that those shopping for Luxury or Designer brands (31%). This isn't about aspirational shopping anymore—it's about stretching purchasing power. In an inflationary environment where tariffs threaten to push clothing prices even higher, resale offers consumers access to the same brands they'd buy new, just at sustainable price points. The Economic Catalyst The timing isn't coincidental. As tariffs and import costs rise, new apparel prices may face upward pressure that directly benefits secondhand alternatives. This economic reality is transforming resale from a niche market to a mainstream alternative. ThredUp's annual report shows U.S. secondhand apparel grew 15% in 2024 and is expected to continue on a growth trajectory through 2029. But the real story isn't growth rate; it's market positioning. Resale is no longer competing with vintage boutiques—it's competing with department store sales floors. The Male Opportunity Here's where conventional understanding of resale may miss the mark: men are driving resale adoption more aggressively than women. Thirty-four percent of men shopped resale sites in the past year versus 29% of women. Looking forward, 44% of men plan to shop resale in the next 12 months compared to just 34% of women. This 10-point intention gap signals untapped potential that most platforms are ignoring. While resale marketing continues targeting female sustainability advocates, male consumers are quietly embracing the channel. Brands and platforms focusing on this demographic could capture disproportionate growth. The Generational Engine Younger consumers aren't just buying secondhand—they're creating circular commerce loops. Among 18-34 year olds, 46% have sold clothing via resale, turning their closets into profit centers. The recent Klarna-Poshmark partnership recognizes this behavior, enabling "buy now, sell later" strategies that justify higher initial spending through future resale value. This generational approach fundamentally alters purchase decisions. When consumers factor resale value into buying choices, they're more likely to invest in quality pieces that retain value—potentially benefiting premium brands while pressuring fast fashion. What This Means for Retail's Future The implications extend far beyond resale platforms. As secondhand shopping becomes mainstream price comparison, traditional retailers face a new competitive reality. Every new item now competes against its secondhand equivalent, forcing brands to justify premium pricing through quality, experience, or immediate availability. Retailers ignoring this shift risk obsolescence. Those embracing it—through certified pre-owned programs, trade-in initiatives, or resale partnerships—position themselves within the circular economy rather than outside it. The resale revolution isn't about sustainability or vintage charm anymore. It's about economic survival in an increasingly expensive world. And that makes it infinitely more powerful.
Yahoo
4 days ago
- Business
- Yahoo
With 51% ownership of the shares, ThredUp Inc. (NASDAQ:TDUP) is heavily dominated by institutional owners
Key Insights Given the large stake in the stock by institutions, ThredUp's stock price might be vulnerable to their trading decisions The top 12 shareholders own 52% of the company Insiders have been selling lately This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. To get a sense of who is truly in control of ThredUp Inc. (NASDAQ:TDUP), it is important to understand the ownership structure of the business. With 51% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk). Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future. Let's delve deeper into each type of owner of ThredUp, beginning with the chart below. Check out our latest analysis for ThredUp What Does The Institutional Ownership Tell Us About ThredUp? Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. As you can see, institutional investors have a fair amount of stake in ThredUp. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at ThredUp's earnings history below. Of course, the future is what really matters. Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. ThredUp is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Capital Research and Management Company with 7.4% of shares outstanding. For context, the second largest shareholder holds about 6.4% of the shares outstanding, followed by an ownership of 6.1% by the third-largest shareholder. Additionally, the company's CEO James Reinhart directly holds 4.1% of the total shares outstanding. Looking at the shareholder registry, we can see that 52% of the ownership is controlled by the top 12 shareholders, meaning that no single shareholder has a majority interest in the ownership. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. Insider Ownership Of ThredUp The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our information suggests that insiders maintain a significant holding in ThredUp Inc.. Insiders have a US$87m stake in this US$845m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently. General Public Ownership The general public-- including retail investors -- own 27% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. Private Equity Ownership With an ownership of 13%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public. Next Steps: While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 3 warning signs we've spotted with ThredUp . But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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Yahoo
6 days ago
- Business
- Yahoo
Why ThredUp (TDUP) Stock Is Trading Up Today
What Happened? Shares of online fashion resale marketplace ThredUp (NASDAQ:TDUP) jumped 3.2% in the morning session after the release of stronger-than-expected U.S. retail sales data for June, which pointed to resilient consumer spending. The Commerce Department reported on Thursday that retail sales rose 0.6% last month, significantly beating market expectations. This report eased investor concerns about the health of the U.S. consumer, a key driver of the economy. For an online consignment and thrift store like ThredUp, the details of the report were particularly encouraging. This broad strength in apparel spending suggests that consumers are still willing to refresh their wardrobes, creating a positive backdrop for companies across the fashion retail landscape. Also, the second quarter (2025) earnings season got off to a strong start. Quarterly earnings reports released during the week exceeded Wall Street's expectations, fueling investor confidence. Around 50 S&P 500 components reported, with 88% of those exceeding analysts' expectations, FactSet data revealed. The shares closed the day at $7.16, up 0.6% from previous close. Is now the time to buy ThredUp? Access our full analysis report here, it's free. What Is The Market Telling Us ThredUp's shares are extremely volatile and have had 75 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 12 months ago when the stock dropped 52.6% on the news that the company reported weak second-quarter earnings. Its full-year revenue guidance missed, and its revenue guidance for the next quarter fell short of Wall Street's estimates. Notably, management called out "challenges in both the U.S. and Europe." Overall, this was a mediocre quarter for ThredUp. ThredUp is up 411% since the beginning of the year, but at $7.20 per share, it is still trading 17.1% below its 52-week high of $8.69 from June 2025. Investors who bought $1,000 worth of ThredUp's shares at the IPO in March 2021 would now be looking at an investment worth $360. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Forbes
13-07-2025
- Business
- Forbes
Farm Rio Introduces Resale Option, Adding To Brand's B-Corp Goals
Farm Rio's new Closet-to-Closet resale program. A significant tenet of B Corp status revolves around circularity. Many fashion brands have recently added services or platforms that allow customers to trade in clothing, typically in exchange for credit towards future purchases. The practice is so ubiquitous that it has spread to other consumer product categories; to wit, eco-friendly and development-oriented children's toy company, Lovevery, just introduced a resale marketplace for its products. Brazilian sustainable-minded brand Farm Rio, which has touted sustainable practices since day one via a tree-planting program, is adding to its circularity efforts with the launch of its 'Closet-to-Closet' program in conjunction with market-tested resale platforms, ThredUp and Poshmark. While both will operate differently, each speaks to the second-hand clothing market mindset that offers new consumers the opportunity to own a piece of the brand at a lower cost and allows current customers to avoid past purchases ending up in a landfill. It also adds to funds spent on future purchases. In today's shopping climate, it also speaks to Poshmark, known for its democratic brand assortment, allows customers to avoid the tedious step of photographing and uploading sale items manually on its site by directly syncing with the Farm Rio website which pulls an image of the item based on the customers purchase history—thus highlighting the tech scope of online shopping logged into an account versus guest checkout. Once the item posting is created automatically, the seller approves the listing before going live. Once a piece is sold, proceeds go straight to the seller in the form of cash. ThredUp works slightly differently and may appeal to those looking to free closet space immediately. Farm Rio customers receive a prepaid shipping label to ship eligible Farm Rio clothing, accessories, or shoes to ThredUp. Customers choosing this receive a Farm Rio gift card for a shopping credit to be used on something new. According to brand spokesperson and marketing specialist Camilla Pinto, the timing of the initiative spoke more to a vibe. "Circularity has always been part of our ethos, and Closet to Closet is a natural evolution of that commitment. With resale becoming a more mainstream and meaningful way to reduce fashion waste, now felt like the right time to join the movement and invite our community to extend the joy of Farm Rio pieces," she noted. Farm Rio's new Closet-to-Closet resale program. It's also an interesting time to feed the US resale market, which some industry voices believe will strengthen in demand in light of ongoing trade wars due to tariffs. Goods resold within the US are not subject to the import taxes regardless of the primary origin. And resale culture has permeated the US shopping landscape. "The U.S. has a strong resale culture and an enthusiastic Farm Rio community, so it made sense to launch Closet to Closet here first as the starting point to build momentum before expanding globally," Pinto said. Like many brand retailers, working with a third-party for an arm of the business that doesn't typically exist in its business model. Poshmark and ThredUp are popular platforms that offer intuitive, accessible experiences. "Rather than building resale into our own channels, partnering with platforms our customers already know and trust allowed us to launch quickly and at scale, while keeping the process simple and seamless," she continued, noting it requires constant oversight. "There are varied experiences with third-party platforms, so we will have ongoing dialogue with our partners to ensure the program feels positive and rewarding. Our goal is to make circularity easy to engage with, and we're listening closely so we can continue to improve the customer journey," she added. The initiative follows the release of the brand's fifth sustainability report in 2024, which highlights its achievements in ESG. It's fair to note the colorful-print brand, whose 1997 founding ethos in Rio de Janeiro included planting trees each step of the way, was ahead of the curve in terms of fashion giving back in some way what it takes from Rio's new Closet-to-Closet resale program. The report highlights that to date, the Certified B-Corp company has donated 1,500,000 trees and reforested nine million square meters. It's invested 1.9 million Real dollars in wildlife and can quantify 18,759.23 tons of CO2e compensated. Farm Rio also works with the Brazilian indigenous Yawananwa peoples from the Amazon, thus helping communities become self-sustaining. Circularity efforts include the use of responsible fabrics, donating 5.98 tons of fabrics to garment collectives, and recycling efforts globally amount to over 73,000 tons of materials remaining out of landfills. The brand also held its first-ever sample sale with four editions globally that kept 22,770 pieces circular. 'Closet-to-Closet' will surely add to that figure on the brand's next report, as Pinto noted. "We're continuing to explore new ways to grow our circularity efforts—both through retail and beyond."
Fashion United
09-07-2025
- Business
- Fashion United
Farm Rio launches resale programme
Brazilian fashion and lifestyle brand Farm Rio is joining the secondhand marketplace with the launch of its first resale programme called 'Farm Rio Closet to Closet'. The programme, which aims to keep wearable garments out of landfill, is being powered by ThredUp and Poshmark and will initially be available in the US only, with the brand stating it has plans to 'expand into other markets soon'. With the Poshmark option, verified Farm Rio purchases can be synced directly from a customer's history on the Farm Rio website. Once linked, a preview advertisement is created, so there is no need to upload photos or write product descriptions. The owner only needs to approve the listings before they go live. When a piece is sold, the proceeds go straight to the seller. Alternatively, customers can send their 'gently worn pieces' to ThredUp at no cost. Farm Rio customers can generate a prepaid shipping label, fill any shippable box or bag with eligible clothing, accessories, or shoes, and send it off. In return, they'll receive a Farm Rio gift card based on what ThredUp resells, ready with shopping credit to be used toward something new.
