thredUP Co-Founder & CEO James Reinhart speaks onstage throughout TechCrunch Disrupt San Francisco 2019 at Moscone Convention Center on October 02, 2019 in San Francisco, California.
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Sales of used clothes are booming on-line, ThredUp CEO James Reinhart instructed CNBC’s Squawk Alley on Friday simply earlier than the corporate’s shares started trading within the Nasdaq Global Select Market.
The firm late Thursday introduced the pricing of its preliminary public providing of its Class A standard stock at $14 a share, on the excessive aspect of estimates, and bought 12 million shares to boost $168 million.
Shares jumped practically 30% in preliminary trading on Friday.
“I think this is a category that’s big, it’s getting bigger,” Reinhart instructed CNBC.
Nine banks, led by Goldman Sachs, Morgan Stanley and Barclays are collaborating within the deal.
Based in Oakland, Calif., ThredUp is a web-based resale market the place shoppers should buy and promote secondhand clothes, footwear and equipment. The web site options about 2.four million listings from over 35,000 manufacturers at any given time.
The secondhand market is estimated to be price $28 billion, in line with ThredUp’s annual report. The firm expects it to extend to $64 billion by 2024 as extra shoppers shift to used clothes as a consequence of environmental considerations from quick style. The Coronavirus pandemic has additionally pushed development as shoppers look to save lots of and earn cash by shopping for style at decrease costs or promoting clothes on the corporate’s platform.
Last yr, the corporate introduced in $186 million in income, a rise of 14% from the earlier yr.
The variety of lively consumers grew 24% final yr, Reinhart instructed CNBC. In addition, 77% of its product provide comes from repeat sellers, which means sellers who’ve beforehand bought on ThredUp earlier than.
“It’s one of the unique value propositions that we’ve been able to provide and so sellers come to us organically and we’ve never had a problem grabbing supply,” he stated.
When requested about post-pandemic tendencies and whether or not customers will proceed to look to resale as folks return to purchasing in individual, Reinhart stays undeterred in his confidence of the platform for years to come back.
“I think we’re still going to be in a recession [after the pandemic], and there’s still some some members of the community that are suffering and so ThredUp provides great brands and great prices,” he stated, including the stimulus checks may even spur folks into buying used.
ThredUp has about 21 partnerships with retailers like Walmart to assist manufacturers broaden its product choices.
“It’s about how they can get their customers to shop more sustainably” he stated. “It actually speaks to the breadth of the program that we built, and I think portends a bright future for resale, and that work in it.”