ThredUp Inc. (TDUP)

ThredUp: How second-hand retailers navigate high inflation

Shares of ThredUp are trading lower on Tuesday despite the company's positive fourth quarter results. The company beat revenue expectations, posting $81.39 million against an expected $80.33 million, up 15% from a year ago. The company also forecasts that the global second-hand market could reach a valuation of over $350 billion by 2027. William Blair Consumer Research Analyst Dylan Carden joins Yahoo Finance to discuss the company's performance against the consumer environment, where discounted branded or quality goods are a "winning equation." He also notes the impact of reduced stigma surrounding second-hand goods, particularly among younger generations. Carden also weighs in on ThredUp's potential to withstand recession or inflationary pressure: "They showed in the pandemic they weren't necessarily macro-proof. The business collapsed along with any other apparel retailer, and that was simply because they are selling a fair amount of goods for people going into the office or for occasion-based. So to the extent you have a consumer making a decision between buying Lululemon (LULU) at Lululemon or Lululemon at ThreadUp, the same discretionary overhang is gonna impact this business as much as any other. It's not countercyclical." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino