Although it generated £54.3 million in revenue, it incurred an operating loss of approximately £59 million, a significant reduction compared to the previous year’s loss of £84.5 million. The company attributed this improvement to fewer one-off costs, particularly those related to its acquisition by Etsy, which had weighed on its financials in the past.
Depop sees substantial growth potential due to its robust user engagement metrics and strong brand awareness in its core markets, which include the UK and the US. A majority of its users belong to Generation Z, with around 55% of those who sold items on the platform also making purchases. Clothing accounts for approximately 92% of its Gross Merchandise Sales (GMS). Additionally, the company highlighted that the resale market outpaced the broader online fashion industry last year.
Despite changes in leadership, with the appointment of Kruti Patel Goyal as CEO, and technological enhancements, including the rollout of Depop Payments in the US and the launch of an onsite ads platform, the company remains committed to its growth trajectory.
Overall, Depop’s narrowing losses and continued focus on user engagement and brand awareness position it well for future expansion in the competitive resale market.