- ThredUp's business model is questionable given its high take rate and negative adjusted EBITDA margins.
- Winmark's CEO mentioned the challenge of shipping low price used apparel.
- ThredUp believes its logistics & data analytics give it a deep moat. However, I don't think the company looks unique to consumers. There are numerous websites that sell used clothes.
- ThredUp boosted marketing spending while Poshmark pulled back. ThredUp beat guidance estimates, while Poshmark missed them. However, Poshmark was EBITDA profitable.
- The data from Alexa, App Annie, and SimilarWeb suggest traffic to ThredUp was strong in May.
For further details see:
ThredUp Faces Business Model Issues