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ThredUp lays off 15% of workers amid widening second-quarter losses

Despite reporting a record gross margin in the U.S., thredUP is laying off 15% of its workforce after a big earnings miss.

Video transcript

DAVE BRIGGS: All right, my play is online consignment and thrift store ThredUp. The stock headed in that direction on Q2 earnings that actually came up well short of revenue expectations. However, they did post a record gross margin of 74% in the US. Also active buyers on that platform rose 29% to 1.7 million, pushing orders up 40%.

Said their CEO James Reinhart, quote, "We believe our model is uniquely positioned to weather macroeconomic volatility. Shares of TD up way up, more than 20% earlier still, hovering around that 20% level up. Tomorrow, by the way, is National Thrift Shop Day. I don't know if they timed it out that well. But, you know, I was going to do my homework on the National--

SEANA SMITH: Yeah, I like it.

DAVE BRIGGS: --Day calendar because Lululemon is trying to take advantage of that by, again, selling used leggings, which I know you're in line for.

SEANA SMITH: You know, I don't know how I feel about used leggings. But I do-- I wouldn't count myself out of the secondary market. I think there are a lot of opportunities to buy some things. Workout clothes, though, something I'm still a little bit hesitant about.

DAVE BRIGGS: Yeah, but I think the secondary clothing market--

SEANA SMITH: Oh, it's huge.

DAVE BRIGGS: --given recessionary fears--

JARED BLIKRE: I'll tell you what.

DAVE BRIGGS: --the timing is right.

SEANA SMITH: And the growth projections in the secondary market are huge. ThredUp even mentioned this in its earnings release, but the US secondhand market projected to more than double in just the next four years, $82 billion. So certainly a huge opportunity here in this space.

JARED BLIKRE: It makes me want to raid the wardrobe closet after this. That's kind of a thrift deal, isn't it? I don't know.

DAVE BRIGGS: Yeah, hey.

SEANA SMITH: Someone has done that before [INAUDIBLE].

JARED BLIKRE: We got to talk about that.

SEANA SMITH: Yeah, just when he's desperate, but we'll leave that for another time.