ThredUp, RealReal stocks rally after secondhand retailers narrow their Q3 losses

Shares of ThredUp Inc. and RealReal Inc. soared in the extended session Monday after both online fashion resellers reported narrower quarterly losses and sales that topped Wall Street expectations despite rising operational costs and other headwinds.

ThredUp TDUP, 2.16% stock rose more than 20% after the company, which went public in March, said it lost $14.7 million, or 15 cents a share, in the third quarter, compared with a loss of $11 million, or 93 cents a share, in the year-ago period.

Revenue rose 35% to $63.3 million, ThredUp said. FactSet consensus called for a loss of 16 cents a share on sales of $62 million.

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“Supply continues to appear endless, demand for secondhand is increasing with more first-time buyers trying ThredUp, and we’re doubling down on infrastructure investments,” ThredUp Chief Executive and co-founder James Reinhart said in a statement.

ThredUp guided for fourth-quarter revenue in a range between $69 million and $71 million, and fiscal 2021 revenue between $248 million and $250 million.

RealReal REAL, +2.39%, which focuses on the resale of luxury and designer items, said it lost $57 million, or 62 cents a share, in the third quarter, compared with a loss of $44 million in the year-ago period. Adjusted for one-time items, RealReal lost 47 cents a share.