ThredUp’s CEO dishes on its AI-first mentality and what’s driving the resale gold rush

ThredUp, which reported fantastic earnings after the bell yesterday, is having a huge main character moment. After spending much of the last two years trading below a buck, shares of the online consignment platform have surged more than 500% in the past 12 months — outpacing nearly every other name in retail — as secondhand shopping hits the mainstream and growth last year outpaced the broader retail clothing market by 5x.

The company has become a magnet for Gen Z’s thrift obsession and shoppers trading fast fashion for quality secondhand goods. But CEO James Reinhart says the rally isn’t just about riding the vibes. In a Q&A with Sherwood News, he breaks down how the company got its groove back.

Reinhart credited ThredUp’s recent success to a powerful synergy between a major consumer shift and the site’s proprietary technology, doubling down on innovation and embedding an AI-first mentality to completely reshape the customer experience in several important ways.

Beyond the company’s focus on AI, he also covered:

How tariffs could actually help ThredUp;

Why he’s happy about the closing of the de minimis loophole;

And his two headlines for 2026 and beyond.

The Takeaway

On one hand, ThredUp’s turnaround story is about being at the right place at the right time and jumping to capitalize on that opportunity. On the other hand, it’s also a story of looking to the future, with the company prioritizing the hottest buzzword of the decade: AI. As Reinheart told us, its “continuous investment in automation and AI technology” is what allows it to scale up multiple unique offerings. And as the reaction to ThredUp’s latest earnings shows, the market is loving it.

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