Vinted Moves Into Profit After 61% Sales Rise

The web secondhand trend vendor Vinted has reported a 61 % rise in gross sales to nearly €600 million, taking the corporate out of the crimson for the primary time amid a growth in demand for “pre-loved” clothes.

The Lithuania-based group stated progress had been spurred by coming into new markets together with Denmark and Finland; an enlargement into luxurious trend via its acquisition of secondhand high-end trend web site Rebelle in 2022; and the launch of a verification service.

Vinted stated gross sales rose to €596 million ($637 million) final 12 months – making it a few third of the scale of Asos – whereas revenue after tax was €17.8 million ($19 million) in contrast with a lack of about €20 million ($21.4 million) a 12 months earlier than.

The group employs greater than 2,000 folks, most of whom are primarily based in Lithuania.

Vinted’s progress comes as considerations about sustainability, tight budgets and tedium with copycat trend throughout the excessive road have pushed a pointy enhance in gross sales of secondhand clothes, significantly amongst younger folks.

Late final 12 months the corporate secured a €50 million ($53.5 million) credit score facility to assist it develop, together with probably buying different companies and increasing its supply service Vinted Go.

Thomas Plantenga, the chief govt of Vinted Group, stated it was taking a look at quite a lot of totally different choices for progress together with shifting into new international locations and product classes.

“We see many alternatives forward, so we’ll proceed to stability profitability towards funding alternatives to speed up in the direction of our mission,” he added.

“Secondhand trend remains to be a comparatively immature market and solely a tiny proportion of trend total. Our efficiency in 2023 was not solely proof that we are able to ship sturdy progress however that we’re on the forefront of a market with enormous potential.”

The “pre-loved” class has gained mainstream reputation. The truth TV present Love Island was sponsored by eBay and featured some contestants appearing as influencers to advertise secondhand model.

Mainstream retail chains together with Primark are additionally internet hosting secondhand sections of their shops.

Regardless of the shift, on-line secondhand specialists have struggled to earn a living, and Vinted’s rivals Depop and RealReal reported losses final 12 months.

In opposition to the backdrop of heavy competitors amongst sellers, the eBay market just lately eliminated all vendor charges for pre-owned trend.

Gross sales of “pre-loved” clothes and footwear are on monitor to make up a tenth of the worldwide trend market subsequent 12 months.

International gross sales of pre-owned garments surged by 18 % final 12 months to $197 billion and are forecast to achieve $350 billion in 2028, in accordance with a report by GlobalData for the resale specialist ThredUp.

The landmark is anticipated to be reached a 12 months later than predicted, as international progress stays barely behind earlier estimates.

By Sarah Butler

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Second-Hand Fashion Startup Vinted Raises €250 Million From Investors

Vinted, a web-based venue for folks to purchase and promote second-hand garments, stated on Wednesday it had raised €250 million ($303 million) from buyers and would make investments proceeds in increasing its operations in Europe and past.