Vinted, the second-hand online clothing marketplace, has posted its first-ever annual profit, piling pressure on traditional and fast fashion retailers as consumers become more concerned about sustainability.
Lithuania’s first unicorn reported a net profit of €18 million during 2023, swinging from a loss of €20 million in 2022.
Sales during the period rallied 61% to €596 million, highlighting the growing demand for used clothes and online shopping.
“Second-hand fashion is still a relatively immature market and only a tiny proportion of fashion overall,” Vinted chief executive Thomas Plantenga explained.
“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 last achieved a valuation of €3.5 billion back in May 2021 when it underwent a round of fundraising.
Since then, management has been considering its options regarding capital structure and is believed to be interested in a secondary share sale ahead of a stock market listing.
Vinted and other second-hand sellers such as Depop have become well-established anti-fast-fashion platforms in recent years, offering shoppers a cheaper route to sustainable purchasing.
However, as the cost-of-living crisis eats away at consumers’ pockets, there has been a rise in ultra-cheap clothing giants such as Shein, the Chinese giant.
Its rapid growth has raised concerns about the ethics of the industry and Vinted says it is focused on directly counteracting these concerns.
“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,” said Plantenga.