Poshmark has submitted a draft registration statement for an IPO to the SEC, putting the retailer on the path to becoming a publicly traded company. Poshmark has not yet revealed the number of shares to be offered or the price range it is seeking.
The IPO may be cashing in on increased interest in second-hand clothing, particularly among younger shoppers: used items now take up 14% of consumers’ closet space, rising to 16.5% among Gen Z, according to a Poshmark study from February 2020. The retailer found that 40% of the clothes in Poshmark shoppers’ closets are second-hand, putting it ahead of the curve on this trend.
Poshmark also added Posh Stories to its site this year, further integrating the site’s social media and retail sides. A survey by Curalate found that 65% of U.S. consumers say a link in a social media post has led them to a product they weren’t originally interested in purchasing, making this integration a potential sales driver.