Poshmark (POSH, $43.78) stock drops, despite Q1 sales rising +42%

Poshmark  shares fell more than -12% in after-hours trading Wednesday , even after the social commerce marketplace reported a narrower-than-expected first-quarter loss per share on 42% higher revenue.

Adjusted for one-time items, Poshmark incurred a loss of -33 cents a share, compared to the -37 cents loss a share anticipated by analysts polled by FactSet.

Revenue increased to $81 million from the year-ago quarter’s $57.1 million. Analysts were expecting $77 million.

Poshmark Chief Executive Manish Chandra said the company had a “great quarter” despite challenges from severe weather and the COVID-19 pandemic.

“We are optimistic that as consumers begin to leave their homes and engage in social activities once again, there will be pent-up demand for apparel, which could drive more frequent and a wider range of apparel and accessory purchases, benefiting our marketplace,” Chandra said.

For the second quarter, Poshmark is expecting revenue between $79 million and $81 million, and adjusted EBITDA between $1.5 million and $2.5 million. The analysts surveyed by FactSet forecast around $81 million.