Poshmark files for IPO

Poshmark is looking to capitalize on the booming market for secondhand clothing.

The online fashion resell marketplace has filed for an initial public offering. It did not disclose the number or shares or the price range, but it reportedly is looking sell $100 million worth of shares. Poshmark has applied to trade on the Nasdaq Global Select Market under the ticker symbol “POSH.

Founded in 2011, Poshmark said, as of September, it had 31.7 million active users, of which 80% belonged to the millennial or Gen Z generations. Users spent an average of 27 minutes a day on its marketplace, the company said in its S-1 filing with the U.S. Securities and Exchange Commission.

"Three key trends are driving the future of retail: the shift to online, the shift to social, and the shift to secondhand,” Poshmark said in its prospectus. “Many of these trends are led by younger generations who continue to grow their spending power as they age.”

Poshmark earned $8.1 million, or $0.45 a share, in the three months ended in June, but posted net losses of $14.5 million and $48.7 million in 2018 and 2019. Similar to many other retailers, Poshmark said the COVID-19 pandemic "has impacted, and will continue to impact, our business.