ThredUp reported a GAAP loss of $0.05 per share for the second quarter, missing the $0.03 loss consensus estimate expected by analysts. While quarterly revenue climbed 16.9% to approximately $90.8 million, management warned that price-sensitive customers are forcing the resale marketplace to ramp up discounting. This shift is expected to create $7 million in promotional pressure throughout the second half of the year.

The investigation focuses on whether the company provided adequate visibility into these margin pressures before the guidance reduction. Levi & Korsinsky is examining if shareholders were misled regarding the impact of competitive discounting on the firm’s consignment-based business model. Investors who purchased TDUP shares and incurred losses are currently eligible for a no-cost evaluation of their holdings, regardless of whether they still maintain their position in the stock.