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Rent the Runway (RENT) Q4 2021 loss


Rent the RunwayIt considers this a huge boon for its business, with more than 2,000,000 weddings in the pipeline and the associated parties.

Plus, according to co-founder and Chief Executive Jennifer Hyman, Rent the Runway is reaping the benefits of consumers seeking value and stability during times of inflation — with Americans seeing higher gas prices, bigger grocery bills and even more expensive price tags on their favorite clothing brands.

Rent the Runway will also increase the price of its membership plans to offset its higher costs. This is certain.

Hyman stated in Zoom that “We are entering into one the strongest rental environments we have ever seen.” Rent the Runway has a major competitive advantage because of the inflationary environment.

On Wednesday, the fashion rental platform reported fiscal fourth-quarter revenue ahead of analysts’ estimates along with a narrower-than-expected loss, as the company won over consumers looking to refresh their wardrobes to adapt to hybrid work schedules and prepare for spring and summer social events.

After-hours trading saw shares rise by 3%

Hyman explained that Rent the Runway is closely linked to the amount of money consumers spend on experiences rather than goods. People are more likely to travel, which means that they will be taking more pictures. UberShe said that Rent the Runway is seeing an increase in usage, including booking restaurant reservations and rides around the city.

Rent the Runway Members pay $94-$235 monthly to get between 4 and 16 designer clothes or accessories. For an additional fee, users can add extra items to their plans. Users can also rent for one time, up to four-to eight days. Rent the Runway offers its customers the chance to shop on the website for items at a reduced price, or the full sticker price.

Retailer reported a net loss, of $39.3m, which is 62 cents per share for the three months ended January 31. That compares with an earlier loss of $38.8m, or 70cs per share, last year. According to Refinitiv’s poll, this was less than the per-share loss estimate of 70cs by analysts.

From $33.5 million in 2013 to $64.1 million last year, revenue increased 91%. This was above the $63.2 million estimate.

StreetAccount conducted a separate survey and found that the fourth quarter gross margin for the company was 36.7%. This is significantly higher than expected.

The fourth quarter ended with Rent the Runway having 115,240 active customers, an 110% increase over the previous year. There were 159.544 subscribers total, not including people who had their accounts suspended.

Rent the Runway is responsible for fifty percent of our traffic [those people]Hyman said that they are likely to have an event or an occasion in the near future. Hyman said that the company regards this “extremely rare window”, which is emerging from the pandemic as an opportunity for new customers to be acquired and kept in business over the longer-term,

Rent the Runway launched its wedding concierge service to cater for people looking for wedding gowns. Hyman explained that Rent the Runway is now positioning itself as a value-oriented company for getting dressed up for many events.

Rent the Runway is expecting sales of $63.5 to $64.5million for the fiscal first quarter 2022. The active subscriber count will range from 130,000 to 132,000. According to Refinitiv, analysts expected revenue of $64.3 millions.

According to the company, revenue will range between $295 million and $305 million for this year. This compares to fiscal 2021’s sales of $203.3 millions. Analysts predicted revenue of $305 million.

Rent the Runway has the complete financial press release here.

This is a developing story. Keep checking back for more updates.