Vinted profits soar as second-hand fashion demand explodes

In 2024, Vinted, the Lithuanian second-hand marketplace, experienced significant growth in both revenue and profit. The company reported a net profit of $87.3 million, a stark increase from the $20.3 million profit reported in the previous year. This growth corresponds with a 36% increase in sales, surpassing $926 million. The adjusted EBITDA also more than doubled to reach $181 million. Founded in 2008, Vinted has been gradually expanding its services and market reach, keeping pace with the growing demand for pre-owned goods worldwide. Vinted's growth can be attributed to a variety of factors, including the successful launch of additional services, such as a second-hand electronics platform, which allows users to sell gadgets like laptops and headphones. This move is part of Vinted's broader strategy to become a comprehensive platform for pre-owned items. With a focus on cost control and infrastructure improvement, the company has positioned itself as a key player in the second-hand market. They have also launched the Vinted Go logistics service, enhancing their shipping options, and have expanded their app availability to new markets including Croatia, Greece, and Ireland, increasing their operational footprint to 22 countries. The company's significant revenues and profits are indicative of the growing trend and consumer interest in sustainable fashion and second-hand products, reflecting a shift in buying behavior among consumers looking to make more environmentally friendly choices. Vinted's success is not just measured by its financial performance; it is also about its impact on the sector and its ability to adapt to changing market conditions. The leadership, particularly CEO Thomas Plantenga, emphasizes a continuous improvement philosophy, aiming to enhance user experience and marketplace penetration. The foundations for this success were laid back in 2008 when co-founder Milda Mitkute conceptualized the platform. The group has faced challenges along the way, including its initial struggles and the competitive nature of e-commerce; however, its resilience and innovative spirit have allowed it to flourish despite obstacles. The launch of a high-profile partnership in April 2024 with actress Alexa Chung further underscores Vinted's commitment to integrating luxury and charitable contributions into their platform, targeting a broader audience and enhancing brand visibility. The company remains poised for future growth, with extensive plans for market expansion and service diversification.