E-commerce retailer blames revenue drop in part on Apple privacy changes
Shares of Poshmark Inc. fell more than 25% in the extended session Tuesday after the e-commerce retailer swung to a surprise quarterly profit but reported sales below Wall Street views, blaming it in part on “headwinds” from Apple Inc.’s privacy changes.
Poshmark POSH, +11.60% said it earned $8.13 million, or 44 cents a share, in the third quarter, contrasting with a loss of $7.2 million, or 9 cents a share, in the year-ago period and FactSet consensus calling for a loss of 8 cents a share in the quarter.
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Revenue rose 16% to $79.7 million, Poshmark said. Gross merchandise value grew 18% to $442.5 million, the company said. Poshmark sells both new and secondhand items, and many of its shoppers are Gen Z and younger millennials.
Analysts polled by FactSet expected Poshmark to report sales of $82.8 million in the quarter.
“We delivered a solid quarter and our sixth consecutive quarter of operating profitability, despite difficult comparisons and the headwinds of Apple privacy changes,” Chief Executive and founder Manish Chandra said in a statement.
The retailer guided for fourth-quarter revenue between $80 million and $82 million, which compares with FactSet expectations of around $85 million.
Shares of Poshmark ended the regular trading day Tuesday up 6%, but sank 26.5% after hours. The stock has lost nearly 30% in the past three months, contrasting with gains of around 6% for the S&P 500 index SPX, +0.72% in the same period. The company became public in January.
