Shares of ATRenew Inc (NYSE:RERE) came under pressure in early trading on Wednesday, after rallying almost 12% follow the release of the company’s first-quarter results.
The leading player in China’s circular economy reported strong growth in both revenue and profitability, crediting its performance to a strategic shift toward direct-to-consumer retail and the continued expansion of its trade-in services.
Revenue And Profit Growth
Total revenue for the quarter reached RMB 6.16 billion ($903.89 million), up 32.4% year-on-year, surpassing the high end of the company’s guidance. This growth was driven mainly by product sales, which climbed 34.4% to RMB 5.73 billion ($840.79 million).
Non-GAAP operating profit grew 70.2% to RMB 190 million ($27.88 million). The company’s non-GAAP operating profit margin expanded to 3.1%, from 2.4% in the year-ago quarter.
Shift To Direct Retail
ATRenew’s results were boosted by its “1P-centric” (first-party-centric) strategy, …