- In a move that demonstrates the continued popularity of the secondhand apparel market, ThredUp on Wednesday announced it filed an S-1 with the U.S. Securities and Exchange Commission for an initial public offering, according to a company press release.
- ThredUp listed the size of the offering as $100 million and has applied to list on the Nasdaq under the ticker symbol TDUP. Underwriters include Goldman Sachs and Morgan Stanley.
- The number of shares to be offered and the price range for the proposed offering have not yet been determined, according to the company.
ThredUp in its IPO filing said the resale economy is "the fastest growing sector in retail," citing GlobalData.
While apparel sales have dramatically slowed during the pandemic, secondhand as a category has continued to be a strong performer. Consumers have become increasingly resistant toward fast fashion as more people begin to demand sustainability initiatives from companies, especially Gen Z shoppers. The pandemic may be contributing to heightening awareness over those efforts, with nearly half of consumers saying that the global health crisis has made them more concerned about environmental issues and 11% stating they have shifted purchases based on environmental claims within the past year.
The secondhand apparel and accessories company, which was founded in 2009, touts the environmental benefits of buying from its platform, stating that its impact is good for "the planet, fighting fashion waste and powering resale at scale." Specifically, the company estimates it has saved 1 billion pounds of carbon emissions and 4.4 billion gallons of water, among other environmental benefits.
According to a company-issued report last year, the resale market is predicted to reach $44 billion by 2029, with 52% of consumers expected to spend more on secondhand fashion. The report further projected that the segment would grow to become 17% of the overall apparel market share, second only to the off-price sector, as buying and wearing secondhand has largely lost its stigma.
ThredUp has also partnered with a number of traditional retailers over the past couple of years, including Macy's, Walmart, Madewell and Gap as apparel companies have looked to drive in new shoppers while diversifying product offerings.
In its IPO filing, ThredUp cited several potential risks to the business, including employees unionizing. "None of our employees are currently represented by a union," the document states. "If our employees decide to form or affiliate with a union, we cannot predict the negative effects such future organizational activities will have on our business and operations."
ThredUp currently has 1.24 million active buyers (which visit the company's website around six times a month) and 428,000 active sellers.