Poshmark Inc. is gearing up to go public.
The online resale business announced yesterday that it has filed a registration statement on Form S-1 with the United States Securities and Exchange Commission related to a proposed initial public offering of shares of its Class A common stock. It plans to trade on the Nasdaq Global Select Market under the ticker symbol “POSH.” The number of shares to be sold and the price range for the proposed offering have yet to be determined.
In the prospectus, Poshmark noted that revenues increased 28% to $192.8 million in the first three quarters of the year. What’s more, it swung to a profit of $20.9 million over the same timeframe, compared with the prior year’s loss of $33.9 million.
Like many retailers, it shared that the coronavirus pandemic has led to several business disruptions: In March, it recorded a 13% year-over-year decline in gross merchandise value, or the total dollar value of transactions, prior to returns and cancellations (excluding shipping and sales taxes). This impacted its GMV for the quarter ended March 31, which rose only 9%. However, GMV surged to 42% for the three months ended June 30 as buyer and seller activity picked up online amid stay-at-home orders.
Still, Poshmark remained cautious of the impact of the global health crisis. “Although the COVID-19 pandemic has accelerated the trend toward e-commerce, it has negatively affected demand for apparel and fashion as retail categories,” it wrote in the statement. “Responses to the COVID-19 pandemic such as prolonged work-from-home policies, quarantines, closures and travel restrictions could continue to depress demand for the products sold on our platform.”
Poshmark was founded by CEO Manish Chandra nearly a decade ago. As a self-described “social commerce marketplace,” the Redwood City, Calif.-based company provides sellers and buyers a platform for new or used apparel, accessories and other lifestyle merchandise. Last year, Chandra shared that the company had so far secured $160 million in funding, hit the elusive unicorn status with a reported $1.25 billion valuation and counted 50 million registered users among its selling-buying base.
It’s not the only resaler seeking to go public: Two months ago, rival ThredUp Inc. submitted a confidential filing for an IPO to the SEC, and media reports have suggested that the offering could come as soon as early next year.