Online second-hand apparel retailer ThredUp Inc posted a bigger-than-expected quarterly loss in Q1 and warned of clothing budgets remaining constrained even as the US economy reopens. The company’s total operating expenses jumped 18.5 per cent to $54.4 million in the first quarter and the company does not expect to generate positive cash flow in the near term as it re-invests in its expansion.

ThredUp’s net loss widened to $16.2 million in the three months ended March, from $13.2 million a year earlier. On a pro-forma basis, the company lost 17 cents per share, bigger than the 16 cents loss analysts expected, according to IBES data from Refinitiv.

ThredUp also forecast second-quarter revenue of $53 million to $55 million, above estimates of $48.8 million. The company expects things to normalize in the third quarter.