Shares of ThredUp Inc. and RealReal Inc. soared in the extended session Monday after both online fashion resellers reported narrower quarterly losses and sales that topped Wall Street expectations despite rising operational costs and other headwinds.
stock rose more than 20% after the company, which went public in March, said it lost $14.7 million, or 15 cents a share, in the third quarter, compared with a loss of $11 million, or 93 cents a share, in the year-ago period.
Revenue rose 35% to $63.3 million, ThredUp said. FactSet consensus called for a loss of 16 cents a share on sales of $62 million.
“Supply continues to appear endless, demand for secondhand is increasing with more first-time buyers trying ThredUp, and we’re doubling down on infrastructure investments,” ThredUp Chief Executive and co-founder James Reinhart said in a statement.
ThredUp guided for fourth-quarter revenue in a range between $69 million and $71 million, and fiscal 2021 revenue between $248 million and $250 million.
which focuses on the resale of luxury and designer items, said it lost $57 million, or 62 cents a share, in the third quarter, compared with a loss of $44 million in the year-ago period. Adjusted for one-time items, RealReal lost 47 cents a share.
Revenue rose 53% to $119 million, RealReal said. FactSet consensus called for an adjusted loss of 53 cents a share on revenue of $113 million. The stock rose more than 9% in the extended session Monday.
RealReal’s supply ramped “nicely, driven by at-home concierge appointments and our expanded retail footprint,” Chief Executive and founder Julie Wainwright said in a statement.
“Based on what we know today, we believe the operational and supply impacts to our business from COVID-19 are effectively behind us, and we are well positioned for a strong holiday season,” Wainwright said.
Moreover, RealReal’s business model is largely insulated from the supply chain shortages and some of the inflationary impacts many retailers are experiencing, she said.
RealReal went public in June 2019.