ThredUp sales nosedive 11 percent, updates on Europe business divestiture

ThredUp announced on Monday that total revenue for the third quarter came in at $73 million, a decrease of 11% year-over-year., coinciding with double-digit declines in the resale platform’s U.S. business.

The Oakland, California-based company said U.S. total revenues fell 10 percent to $61.5 million for the three months ending September 30, while active buyers in the U.S. fell 7 percent to 1.248 million alongside a 10 percent drop in U.S. orders to 1.172 during the quarter.

Globally, active buyers fell by 7% to 1.6 million and orders were down 14% to 1.5 million.

Net losses widened to $24.8 million during the quarter, compared to a net loss of $18.1 million, for the third quarter in 2023. 

​“Though we know there is still work ahead, we have made clear progress in course-correcting in the U.S. since last quarter,” said ThredUp CEO and co-founder James Reinhart. “With momentum in our marketplace, we are pleased to be raising our U.S. Q4 and 2024 revenue outlook and are excited for the opportunities in front of us.”

Looking ahead, the company expects full-year revenues to be in the range $300 million to $302 million for the 12 months.

In August, ThredUp announced plans to exit Europe, adding it was exploring strategic alternatives for Bulgaria-based Remix, a second-hand apparel company it acquired in 2021 for around $28 million.

In its earnings update, the company said it signed a non-binding term sheet on October 31 for a management buyout of Remix by Florin Filote (Remix’s current general manager) and the Remix management team. ThredUp said both parties are working toward the closing of this transaction by the end of 2024.