Rent the Runway Shares Fall on Declining Margin Outlook

Dow Jones
04/15
 

By Katherine Hamilton

 

Rent the Runway shares fell after the company said during its earnings call that it expects adjusted-earnings margins to worsen as macroeconomic uncertainty persists.

The stock fell 13% to $5.06 on Tuesday. Shares are down 36% this year.

The clothing-rental platform expects first-quarter margins for adjusted Ebitda, or earnings before interest, taxes, depreciation and amortization, to be minus 5% to minus 7% of revenue, compared with minus 1.9% of revenue the year before.

Chief Financial Officer Sid Thacker told analysts the year-over-year decline in margins reflects higher revenue-share expenses.

Fixed revenue-share payments are expected to be higher in the first quarter due to a bigger proportion of inventory receipts from Rent the Runway's revenue-share channel, Thacker said.

Thacker ended the earnings call by emphasizing that the macroeconomic and geopolitical environment "remains highly uncertain with potential impacts on transportation costs, fuel surcharges and consumer confidence."

Rent the Runway's revenue rose 20% to $77.8 million in the company's fiscal fourth quarter, which ended Jan. 31. Its loss in the quarter narrowed to $1.4 million, or 4 cents a share, from a loss of $13.4 million, or $3.27 a share, the year before.

 

Write to Katherine Hamilton at katherine.hamilton@wsj.com

 

(END) Dow Jones Newswires

April 14, 2026 13:20 ET (17:20 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

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