A prominent US-based online second-hand fashion company, ThredUp plans to exit the European market as its revenues from this market declined by 18 per cent to $13 millionduring Q2, FY24.
The company’s gross profit from European operations declined by 25 per cent to $3.6 million during the quarter while gross margin decreased to 27.3 per cent from 29.8 per centreported in the same period in 2023.
Overall, ThredUp’s sales during Q2 2024 dropped by 4 per cent Y-o-Y to $79.8 million. However, the company’s gross profit improved by 1 per cent compared to Q2 2023, with a gross margin rising to 70.4 per cent. The net loss for the quarter narrowed to $14 million from a net loss of $18.8 millionin Q2 2023.
ThredUp also reported an improvement in its adjusted EBITDA loss to $1.5 million from $5 million in the same quarter the previous year.
Looking ahead, ThredUp’s anticipates consolidated revenue to increase to $298 million -$302 million in FY24, with US sales projected to rise to $247 million-$251 million.
ThredUp has also introduced certain AI-enabled search tools such as enhanced search, image search, and style chat, to improve the customer experience. These features will customers to more efficiently navigate ThredUp's extensive inventory of over 4 million single-SKU items.