Online resale shop ThredUp (TDUP) rocketed 48% higher yesterday after reporting record first-quarter results as tariffs caused shoppers to inundate the retailer. The number of new customers nearly doubled from the year before, rising 95% and continuing into the second quarter. ThredUp reported April was the strongest new customer acquisition month in the company's history.
CEO James Reinhardt, however, doubts tariffs actually caused the influx, since the new duty regime only went into effect on April 2. He also said he doesn't see any tailwinds from the higher import fees for the rest of the year.
Yet as tariffs were a central part of President Trump's electoral campaign, the first tariffs were imposed on Canada and Mexico in February, and were widely reported on throughout the first three months of his administration, it's likely consumers were already seeking alternatives for where to buy apparel and accessories.
TDUP Q1 revenue rose 10.5% to $71.3 million from $64.5 million, which helped slash losses by more than two-thirds to $5.2 million, or $0.04 per share. That was well ahead of analyst expectations of $67.5 million in sales and losses of $0.06 per share.
The resale retailer also raised its full-year guidance to a range of 8% to 12%, or revenue of $72.5 million to $74.5 million, compared to its prior 4% to 8% range.
TDUP stock soared to $6.56 per share, a 48% gain. Shares have now risen 372% in 2025, but are up 964% in the last six months.
Recently I cautioned on buying the stock ahead of earnings, believing as TDUP's CEO did that tariffs wouldn't have an effect yet. Although I said the environment is beneficial to the retailer, I obviously missed how much investors were waiting for a positive signal from ThredUp.
Pinched consumers bracing for impact from tariffs sooner than expected was the green light they sought and bid up TDUP's stock. Shares are up almost 1% in premarket trading today.
