Now is not such a shabby time to be selling used clothing.
Used-clothing marketplaces ThredUp and The RealReal are seeing brisk business as container shortages, factory shutdowns, and increasing labor and transportation costs make new clothing more expensive and scarce for consumers. After both companies reported earnings Monday afternoon, RealReal shares surged by more than 15% Tuesday while ThredUp shares were up as much as 23% early in the day before giving up those gains by midday. Part of those surges may have had to do with short sellers unwinding their bets; short interest accounts for around 20% of the share count for both companies.
