US online second-hand fashion company, ThredUp is to leave the European market after reviewing its activities there. ThredUp declared in its Q2 results that it plans to exit the market entirely and is considering strategic options for its European operations.
In addition, the company is considering strategic options for its Remix division, a resale platform it purchased in 2021 and which produced US $ 63.5 million in net revenue and a 24.2 per cent gross margin in 2023.
According to ThredUp’s Q2 earnings for the period ending 30th June 2024, its US $ 13 million in revenue from Europe decreased 18 per cent from the previous year. Its US $ 3.6 million gross profit was 25 per cent less than the same period last year, and its gross margin was 27.3 per cent as opposed to 29.8 per cent in the second quarter of 2023.
The company’s entire Q2 sales was US $ 79.8 million, down 4 per cent from the previous year. Its Q2 gross margin was 70.4 per cent, and its gross profit was up 1 per cent from the previous year.
In contrast to Q2 2023, when it recorded a net loss of US $ 18.8 million, or a negative 22.7 per cent of revenue, ThredUp reported an overall net loss of US $ 14 million, or a negative 17.5 per cent of revenue, during the second quarter of 2023.
During the period, it saw an adjusted EBITDA loss of US $ 1.5 million, or a negative 1.9 per cent of revenue, as opposed to an adjusted EBITDA loss of US $ 5 million, or a negative 6.1 per cent of revenue, for the same period the previous year.
Based on combined and US-only operations, ThredUp’s FY 2024 forecast projects consolidated revenue of US $ 298 million to US $ 302 million and US sales of US $ 247 million to US $ 251 million.
According to the company, the introduction of a new suite of AI-enabled search tools, such as enhanced search, image search, and style chat, to tailor the buying experience, was a recent business highlight. Customers of ThredUp will be able to quickly find and browse the company’s inventory of more than 4 million single-SKU items thanks to these features.
