Vinted, a second-hand online clothes marketplace, reported its first annual profit, increasing pressure on traditional and fast fashion businesses as buyers become more concerned about sustainability.
Lithuania's first unicorn declared a net profit of €18 million in 2023, after a loss of €20 million in 2022, ProactiveInvestors reported.
During the period, sales increased by 61% to €596 million, indicating an increasing demand for used clothing and internet purchasing.
"Second-hand fashion is still a relatively immature market and only a tiny proportion of fashion overall," Vinted CEO Thomas Plantenga noted.
"Our performance in 2023 was not only proof that we can deliver strong growth but that we are at the forefront of a market with huge potential."
Vinted's most recent valuation was €3.5 billion, attained during a funding round in May 2021.
Since then, management has been reviewing its capital structure alternatives, and it is said to be interested in a secondary share sale prior to a public market listing.
Vinted and other second-hand retailers, such as Depop, have emerged as well-known anti-fast-fashion platforms in recent years, providing buyers with a more affordable option for sustainable shopping.
However, as the cost-of-living problem eats away at consumers' wallets, there has been an increase in ultra-cheap apparel behemoths like Shein, with the Chinese company becoming the largest fashion store back in 2022.
However, it has prompted questions about the industry's ethics, and Vinted is committed to proactively responding to the sector's issues.
"Growing consumer-to-consumer second-hand fashion is an impactful way to mitigate the harm of the fashion industry and the reason behind our mission to make second-hand the first choice," Plantenga stated in a press release. /BGNES