What happened
Shares of online apparel-resale platform Poshmark (POSH) were trading lower on Wednesday. The company reported its second-quarter results after the U.S. markets closed Tuesday, and while its numbers were good, its guidance was not quite what retail investors had expected.
As of 12:45 p.m. EDT, Poshmark's shares were down about 14.6% from Tuesday's closing price.
So what
Poshmark's second-quarter results were pretty decent, or at least better than Wall Street had expected. The company reported a loss of $0.04 per share on revenue of $81.8 million, a double beat; analysts polled by Thomson Reuters had expected a loss of $0.07 per share on revenue of $80.29 million.
During Poshmark's earnings call, CEO Manish Chandra said that the company's efforts to expand to new markets continue on course, with its new Australian site (launched in February) hitting its stride and preparations for an expansion to India well underway.
Poshmark's CFO said that Apple's new privacy controls had hampered its marketing in the quarter. Image source: Poshmark.
But there may be clouds on the horizon, and that's probably why the stock is down today. The company's guidance for third-quarter revenue -- between $81 million and $83 million -- fell a bit short of expectations, and outgoing CFO Anan Kashyap said that its mobile marketing efforts were being hampered by Apple's new user controls over tracking by digital advertisers.
Now what
These may be passing issues. In an interview with Reuters, Chandra said that he expects the effects of Apple's policy to be temporary, as Poshmark has increased its spending on alternative marketing channels including television advertising and celebrity tie-ups.
Chandra also said that he doesn't expect a significant negative impact from the outbreak of the delta variant of the coronavirus, given the company's strong revenue growth during the initial COVID-19 outbreak early last year.