Stock for Poshmark, an online marketplace for users to buy and sell new and used clothes, surged on its Q1 earnings report as it beat on the top and bottom lines. CEO Manish Chandra joined Cheddar to break down the positives he gleaned from the company's performance. "On the one hand, we are enabling the consumers to save money," he said. "But really, on the other hand, we are also allowing them to earn money because everything in your closet is just more valuable today."

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Fashion Marketplace Poshmark Beat Earnings Allowing Its Consumers to Earn Money

investors are adding posh mark to their shopping cart this afternoon, shares of the online apparel company are up, check it out. You can see there 26% during today's session after posh mark beat estimates on the top and bottom lines in the first quarter. Thanks to record active buyer growth joining us now to discuss this is posh mark, ceo, Manish chandra and very congratulations. First off, But what's the biggest thing investors should be taking away from your latest earnings report? I think the simple thing to take away is that as we beat both revenue and earnings and and posted record active buyers of 7.8 million that the social in our marketplace and the simplicity, asset light model, the core characteristics and the core strategies that we've been investing are working and that's the simple message. I think the second thing is that in these very unprecedented and dramatic times with inflation running very high bosch Mark is a great partner to the consumer. On the one hand, we are enabling the consumers to save money. But really on the other hand, we are also allowing them to earn money because everything in your closet is just more valuable today. Exactly now You you reported $90.9 million Q1, but you expect Q2 numbers to fall. Why is that? We want to be cautious in this climate? I think if you look at the last two years, you look at the quarter that we've had, there's a war raging. We are coming off of pandemic inflation is raging. Supply chain is disrupted and parts of the world are still suffering heavily from the pandemic. So with all of these things, we want to continue to be cautious in what we do, but at the same time continue to follow our core growth strategies and invest in them because we feel ultimately what we're bringing to the world. This whole social model of commerce. The ability to sell from your closet building a fashion marketplace is an enduring play and we are really in the first innings of the resale revolution that's happening. So tell me, how does posh mark navigate things like inflation and supply chain issues? Yeah. So the foundation of Hash mark is really enabling anybody to turn their closet and and sell it on bash mark. And that allows us to really in many ways beat both sides inflation and supply chain because you already have the products they're sitting in your closet, you're turning them into cash on the flip side because people are buying from each other, not only can you sell, you can buy and then you can sell again that's still circularity allows you to capture some of the value that's in your closet. Reapply it. That's it. It's almost like in a way, stock trading now as the pandemic seems to wane and people start heading out to brick and mortar stores. How does posh posh mark adjust their e commerce strategy. What's what's really fun for us is we actually have been a big believer in, in person for a long time. So as the pandemic pandemic was settling down, we sort of had the excitement to launch hundreds of events across the country, which we called passion coffee, but we had put that on hold as pandemic took hold of the country in 2020 we're starting to see resumption of many of them. In fact, last night we had a pretty big event in Arizona and we're starting to see these events happening. People coming together on the weekend and these events are powerful because they bring the seller community too together. They bring sellers and shoppers together. They're great for us to grow and great for us to engage and retain. So we think the physical world is actually a very powerful engine for growth on the community side. But when you think of commerce, it's even more exciting. And second in the first quarter we saw apparel sell accelerate, which means people are actually going out and engaging in the real world. We also saw event oriented shopping accelerate. So prom items were up 75% year over year and wedding items were up 39% year over year. Now I understand that Posh mark is also bringing shoppers some flexibility when it comes to payments. What's going on. Yeah, we, we partnered with the firm, we first partnered with them on our premium products that went $200 plus $50, you can really use either multi payment option or sort of more on installment based option. And it just allows customers to have more flexibility to cope with payment and inflation and a tighter wallet that all of us are feeling these days. Alright, Manish chandra ceo of posh more. Congratulations on the report. Thank you again for joining us on the show.