By Denny Jacob
Rent the Runway narrowed its quarterly loss while slightly increasing revenue, but investors continued to shed shares amid concerns about its prospects in a more volatile operating environment.
The subscription fashion rental company narrowed its loss to $13.4 million, or $3.44 a share, for the quarter ended Jan. 31, from $24.8 million, or $7.02 a share, in the prior-year period.
The company ended the quarter with 119,778 active subscribers, a 5% decline from 125,954 at the end of fiscal 2023.
Revenue ticked up to $76.4 million from $75.8 million.
Chief Executive Jennifer Hyman said the company is on steadier financial footing as its reduced its cash burn. "Our priority is to grow new customers and strengthen customer loyalty by reinvesting in our inventory," she added.
Rent the Runway forecast revenue between $68 million and $70 million in the fiscal first quarter.
Shares tumbled 17% to $4.50 in premarket trading. The stock is down 63% over the last year, extending a steady decline since its public debut in 2021.
Rent the Runway has been looking for new growth vectors after the pandemic spurred cancellations or paused memberships as the need for outfits dried up with vacations, parties and weddings on hold. Now the company is facing an economy where inflation, tariffs and concerns about a recession are prompting consumers to largely just spend on necessities rather than miscellaneous goods.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
April 15, 2025 08:36 ET (12:36 GMT)
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