Poshmark files for IPO

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Online fashion marketplace Poshmark Inc. has filed for an initial public offering, seeking to sell $100 million worth of shares, although that number is often a placeholder used to calculate filing fees. Redwood City, Calif., -based Poshmark, founded in 2011, said that its users spent an average of 27 minutes a day on its marketplace. As of September, it had 31.7 million active users, of which 80% belonged to the millennial or Gen Z generations, it said. “Three key trends are driving the future of retail: the shift to online, the shift to social, and the shift to secondhand. Many of these trends are led by younger generations who continue to grow their spending power as they age,” the company said in its prospectus Thursday. Poshmark earned $8.1 million, or 45 cents a share, in the three months ended in June, but posted net losses of $14.5 million and $48.7 million in 2018 and 2019. The COVID-19 pandemic “has impacted, and will continue to impact, our business,” it said. Poshmark said it had $192.8 million in revenue for the nine months ended in September, compared with $150.5 million in the same period a year ago. The company filed to trade on the Nasdaq under the symbol POSH. Underwriters include Morgan Stanley, Goldman Sachs, and Barclays. The market for secondhand retail clothing has grown in recent years, and in June 2019 shares of RealReal Inc. soared 45% higher than its $20 IPO price.
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