(Reuters) -Online second-hand apparel retailer ThredUp Inc on Wednesday reported a bigger loss in its first quarterly report as a public company, weighed down by higher spending to expand its business.
The company’s shares tumbled 11% in extended trading as investors shrugged off a revenue beat.
ThredUp’s stock has gained over 43% since the debut in late March as investors bet on a sharp growth in the market for used apparel and accessories with Gen Z and millennial consumers increasingly looking past the stigma of second-hand and growing more conscious of sustainability.
The company is spending rapidly on new distribution centers, delivery logistics and automation to cater to the surge in demand and that has pressured margins.
ThredUp’s net loss widened to $16.2 million in the first quarter ended March 31, from $13.2 million a year earlier. On a per share basis, attributable loss was 86 cents.
Total operating expenses rose 18.5% to $54.4 million
Analysts on average had expected a loss of 16 cents per share, according to IBES data from Refinitiv, but it was not immediately clear if the numbers were comparable.
ThredUp’s total revenue rose 15.2% to $55.7 million, beating estimates of $48.4 million.
The company forecast second-quarter revenue of $53 million to $55 million and full-year revenue of $223 million to $229 million.
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