Rent the Runway filed for an initial public offering on Monday and revealed its subscriber base tumbled during the Covid pandemic but has since started to grow again. The digital clothing rental platform also showed its losses mounted in 2020 and sales took a hit from fewer women refreshing their wardrobes.Oct 4, 2021
What is happening with Rent the Runway?
Rent the Runway booked a wider fiscal third-quarter loss compared with 2020, as its sales shot up 66% year over year, in its first financial report since its IPO in late October. The company ended the quarter with 116,833 active subscribers, up 78% year over year.Dec 8, 2021
Is Rent the Runway losing money?
Rent the Runway is still losing money, and it's sending investors fleeing. In its fiscal third quarter, Rent the Runway reported a wider net loss compared with a year earlier and an active subscriber count that has yet to return to pre-Covid levels.Dec 9, 2021
Is Rent the Runway overvalued?
Rent the Runway appears to be significantly overvalued compared to competitors, and this combined with the other difficulties means that investors should stay far away from this IPO.
Are there any other sites like Rent the Runway?
- Trunk Club by Nordstrom.
- Le Tote.
- Gywinne Bee Unlimited.
- Rachel Zoe Box of Style.
- Trendsend by Evereve.
- Luxe Catch.
What type of company is Rent the Runway?
Type of business Public
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Headquarters New York City , USA
Founder(s) Jennifer Hyman Jennifer Fleiss
Key people Jennifer Hyman, CEO
Industry E-commerce
Is Rent the Runway profitable?
Rent the Runway, despite its popularity, is relatively small compared with other retailers and not yet profitable. The company posted a net loss of $171 million last year, compared with a net loss of $154 million in 2019. Hyman said that the company also planned to expand into new categories.
How much does Rent the Runway make a year?
Revenue grew 66% to $59 million from $35.5 million. The company ended the quarter with 116,833 active subscribers, excluding those who have put their memberships on pause, up 78% year over year. Rent the Runway said that accounts for about 87% of the active subscriber base the company had back in 2019.Dec 8, 2021