thredUP (TDUP) Stock Forecast & Price Target

ThredUp Inc. reported a significant revenue increase of 33.6% to $82.2 million, exceeding both the high end of its guidance and the broader market forecasts, which highlights its robust consumer demand reflected in strong year-over-year growth in orders and active buyers. The company anticipates its fiscal year 2025 revenues will reach between $307 million and $309 million, up from previous guidance, indicating a strong upward trajectory in financial performance. Furthermore, ThredUp has successfully optimized its operations through a streamlined domestic-only model and advanced AI-driven tools, which not only enhances customer experience but also fosters sustainable growth by minimizing tariff exposure.

ThredUp Inc. has adjusted its gross margin outlook for the full year to a range of 79.0%-79.2%, reflecting a decline from the previous year's rate of 79.7%. The company is also experiencing a significant slowdown in sales growth, with Q4 projected to grow approximately 10% year-over-year, a considerable drop from the 25% growth seen in Q3. Additionally, operating expenses rose to 84.7% of sales, exceeding both internal estimates and market expectations, which raises concerns about profitability in the face of a challenging consumer environment and broader economic uncertainties.