Rent The Runway, Inc. (NASDAQ:RENT) stock plunged after the released its second-quarter results after Thursday's closing bell. Here's a look at the details in the report.
- RENT stock is plunging. See the real-time price action here.
The Details: Rent the Runway reported wider-than-expected quarterly losses of $6.55 per share, compared to the analyst estimate for losses of $5.48.
Quarterly revenue came in at $80.9 million which beat the $75.5 million analyst estimate.
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The company also announced a recapitalization plan to reduce debt from $340 million to $120 million and extend the maturity of the debt to 2029.
Rent the Runway reported the following Q2 key metrics:
- 146,373 ending Active Subscribers, representing an increase of 13.4% from 129,073 at the end of the second quarter of fiscal year 2024.
- 146,765 Average Active Subscribers, representing an increase of 6.8% from 137,455 at the end of the second quarter of fiscal year 2024.
- 185,102 ending Total Subscribers, representing an increase of 5.7% from 175,087 at the end of the second quarter of fiscal year 2024.
“We are at a pivotal moment for Rent the Runway with our recapitalization plan and continued business momentum,” said Jennifer Hyman, Co-Founder and CEO of Rent the Runway.
“Reducing our debt from $340 million to $120 million while extending maturity to 2029 gives us the financial flexibility we need to fully execute on our turnaround. The numbers speak for themselves – 13.4% year-over-year subscriber growth, customer satisfaction at its highest in three years, and engagement with our new inventory overperforming across every key metric,” Hyman added.
RENT Stock Price: According to data from Benzinga Pro, Rent The Runway stock was down 26.74% at $5.78 in Thursday's extended trading.
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