Online fashion resale marketplace ThredUp (NASDAQ: TDUP) will be reporting earnings this Monday after market close. Here’s what investors should know.
ThredUp beat analysts’ revenue expectations last quarter, reporting revenues of $79.7 million, up 18.5% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates. It reported 1.65 million orders, up 29.5% 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 12.5% year on year, improving from the 10.5% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to 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 segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Columbia Sportswear posted flat year-on-year revenue, beating analysts’ expectations by 2.6%, and Levi's reported revenues up 14.1%, topping estimates by 5.6%. Columbia Sportswear traded up 2.3% following the results while Levi's was also up 10.7%.
Read our full analysis of Columbia Sportswear’s results here and Levi’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 7% on average over the last month. ThredUp is up 22.4% during the same time and is heading into earnings with an average analyst price target of $8.80 (compared to the current share price of $4.41).
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