ThredUp securities investigation over guidance cut

ThredUp Inc. reported a second-quarter GAAP loss of $0.05 per share, wider than the $0.03 consensus estimate, and reduced its full-year revenue outlook, citing approximately $7 million of promotional headwinds in the second half due to a more price-sensitive customer base. The stock declined following the announcement. Levi & Korsinsky, LLP commenced an investigation into potential federal securities law violations, focusing on whether ThredUp adequately disclosed its exposure to promotional and margin pressure before the guidance reduction. The investigation references a March 4, 2024 earnings call where CFO Sean Sobers made statements about cash position and customer pressure, but no specific promotional cost figure was mentioned. Investors who suffered losses are encouraged to contact the firm.