thredUP (TDUP) Stock Forecast & Price Target

ThredUp Inc. reported total revenue growth of 33.6% to $82.2 million, surpassing company guidance and consensus estimates, fueled by a significant 37.2% increase in orders and a 25.6% rise in active buyers year-over-year. The company experienced its highest new customer acquisition month in October, with an 81% increase, attributed to low acquisition costs and an enhanced AI-driven platform. Furthermore, ThredUp's revised FY25 revenue outlook of $307 million to $309 million reflects an upward adjustment from previous estimates, indicating strong growth momentum and strategic improvements in its domestic model.

ThredUp Inc. has revised its full-year gross margin outlook to 79.0%-79.2%, which, while slightly improved from previous estimates, still marks a decline from the prior fiscal year's rate of 79.7%. The company is also facing a significant slowdown in sales growth, projecting only a 10% year-over-year increase in Q4, down from approximately 25% in Q3, reflecting potential challenges in consumer demand. Additionally, operating expenses have risen to 84.7% of sales, exceeding forecasts, amidst a backdrop of uncertain macroeconomic conditions, including weak consumer confidence and a competitive retail landscape, raising concerns about future profitability and sustainability.