Online fashion resale marketplace ThredUp (NASDAQ: TDUP) will be reporting earnings this Wednesday after the bell. Here’s what investors should know.
ThredUp beat analysts’ revenue expectations last quarter, reporting revenues of $81.67 million, up 14.6% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ EBITDA estimates. It reported 1.71 million orders, up 24.8% year on year.
Is ThredUp a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting ThredUp’s revenue to grow 16.3% year on year, in line with the 16.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. ThredUp has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at ThredUp’s peers in the consumer discretionary - apparel and accessories segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Levi's delivered year-on-year revenue growth of 8%, beating analysts’ expectations by 2.9%, and Carter's reported revenues up 5.2%, topping estimates by 1.6%. Levi's traded down 2.2% following the results while Carter's was up 5.6%.
Read our full analysis of Levi’s results here and Carter’s results here.
Investors in the consumer discretionary - apparel and accessories segment have had steady hands going into earnings, with share prices flat over the last month. ThredUp is down 11.2% during the same time and is heading into earnings with an average analyst price target of $8.04 (compared to the current share price of $6.15).
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