By Dean Seal

Shares of Rent the Runway took a tumble after the company said costs in its latest completed quarter grew much faster than revenue, leading to steeper losses.

The stock was down 19% at $6.40 after hours. Shares had climbed nearly 30% during the trading day to close at $7.89. The company didn't issue any disclosures or press releases until after the market closed.

The fashion-rental company posted a loss of $26.4 million, or $6.55 a share, for the quarter ended July 31. Last year, the fiscal second-quarter loss was just $15.6 million, or $4.17 a share.

Revenue ticked up 2.5% to $80.9 million. The company ended the quarter with 146,373 active subscribers, up 13% from a year earlier. "We are executing a turnaround and seeing strong signals that our strategy is working," Chief Financial Officer Sid Thacker said.

But total costs meanwhile ballooned 14% to $101 million from higher fulfillment costs, overheads and depreciation for its rental products.

For the current quarter, Rent the Runway is guiding for $82 million to $84 million in sales. That would top the year-earlier quarter's $75.9 million. The company still expects to end the fiscal year with double-digit growth in active subscribers.

The New York company warned that unknowns in the economy, tariffs and the timing of potential improvements in customer retention could skew its results.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

September 11, 2025 16:49 ET (20:49 GMT)

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