Hyman also said Rent the Runway has a marketing flywheel where users become ambassadors of sorts. What we have learned is that customers care about wearing something that’s new to her every time she comes to Rent the Runway.” “We’ve debunked the myth that things go out of style immediately. “We monetize our inventory over many years,” she said. “In this environment that we’re in, I’m executing to build a track record over time and deliver consistent results, prove to Wall Street that we’re doing what we say we’re going to do,” she said.īut there’s still more work to be done to educate people on the business model, she said, pointing to a couple of aspects that she said are under appreciated. Rent the Runway reiterated its guidance for the year, calling for revenues in the range of $295 million to $305 million, with the target to become breakeven on an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) basis over the next two to four quarters. To help in that effort, the CEO is looking to keep her promises. Hyman is still working to fully explain Rent the Runway and its business model to Wall Street, where the company IPO’d at $23 a share in October, but lately has been trading below $4.
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And adjusted losses before interest, taxes, depreciation and amortization tallied $8.8 million. Net losses stood at $42.5 million from the quarter, slightly higher than the $42.3 million seen a year earlier. Revenues for the three months ended April 30 doubled from a year ago to $67.1 million, while active subscribers rose 82 percent to a new high of 134,998.
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But overall, results that were better than projected. That momentum showed in the company’s first-quarter financials, which registered continuing net losses. Utilization of cocktail dresses and black dresses are the highest we’ve ever seen.” There’s a lot of everyday celebratory looks as well. “There is a lot of formal inventory being rented.
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“Black tie is to 2022 what sweats were to 2020,” she said.