Online thrift store Poshmark CEO sees fashion shift as consumers 'purge' closets
- Consumers are on a closet "purge" after about a year of lockdowns and as social activities make a return, Poshmark CEO Manish Chandra told CNBC.
- "We certainly are seeing real change in what people are buying," he said on "Mad Money," noting that sales of items bikinis and jean shorts have roughly doubled.
- "In a way, it's a gigantic purge, but your purge is value for someone else," he said of the sustainability-focused retail site.
Fashion trends are shifting as consumers prepare for the post-pandemic world, Manish Chandra, CEO of online resaler Poshmark, told CNBC Thursday.
Sales of clothing for going out are on the rise after roughly a year of lockdowns.
Meanwhile, fitness apparel purchases are on the decline, and the e-commerce platform is a channel for buyers and sellers to "purge" their closets, he said in a one-on-one with "Mad Money" host Jim Cramer.
"We certainly are seeing real change in what people are buying," Chandra said.
Poshmark is an online marketplace that incorporates social media elements where buyers and sellers can create profiles to make connections, like, comment and share apparel for sale in what's called "Posh parties."
"We're sort of in a way starting to get people ready," Chandra said.
As interest in in-person social activities picks up in the warmer months, bikini and jean short sales have roughly doubled on the consignment site. And as many employers call staff back to the office after about a year of remote work, sales of work dresses are up 30%, Chandra said.
On the other hand, sales of sweatpants and other items associated with working out have slowed, he added.
The sustainability-minded website, which doesn't hold inventory, allows users to recycle or sell their clothing, redirecting would-be discarded items from the landfill.
"In a way, it's a gigantic purge, but your purge is value for someone else," Chandra said.
Poshmark began trading in January in a hot public offering that valued the company at $3 billion, more than double its value in 2019.
The stock last closed at $39.34.
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