ThredUp, which struggled to make money in its first several years due to the logistical complexities of collecting, sorting, processing, reselling and shipping thousands of clothing items daily, broke even on an adjusted EBITDA (earnings before interest, taxes, debt and amortization) for its U.S. business last year for the first time. The 15-year-old company’s revenue continues to grow as it inches toward overall profitability, posting 5% growth in the first quarter of 2024 and building on a record $322 revenue for all of last year.

Some analysts credited continued inflation with the company’s higher-than-expected earnings this spring as consumers look for ways to cut costs.

The company is part of a category of businesses—including resale platforms like The RealReal and rental companies like Rent the Runway—that aim to shift demand away from new production to reduce the environmental impact of the fashion industry. Still, the fast fashion industry continues to grow as ecommerce giants like Shein and Temu gain popularity, putting the world on a crash course with the myriad environmental disasters created by textile waste, most of which is some form of plastic.

ThredUp has made climate a central part of its brand platform, publishing yearly reports on the impact of the resale industry and its climate footprint, and encouraging consumers to take a quiz that estimates their individual “fashion footprint” to better understand how their shopping impacts the climate.

In ThredUp’s new brand platform, debuting in a monthlong campaign this week, sustainability-related messaging remains part of the equation. “Endless Expression,” as the campaign is titled, aims to offer “every style for every version of you,” embracing the concept of infinity, Reinhart explained. The campaign will run on digital platforms and connected TV to start, and could be extended beyond the month depending on how it’s received.

Moving forward, ThredUp plans to build upon these initial AI search tools, making it easier for shoppers to navigate its giant inventory, which adds 40,000 items daily on average.

The current AI offerings are “the anchor technology of how we evolve the brand, how we evolve the customer journey,” Reinhart said.