Rent The Runway news and archive

Some clothing rental businesses are seeing subscribers dwindle

Monthly subscription fees ranging from 79 to 240 dollars for rented clothes may be perceived as an unnecessary expense, prompting subscribers to cancel their memberships. It is one of the reasons companies like Rent the Runway is banking on clothing from in-demand designers to retain customers and counter recent subscriber losses, while rival...

Business

Rent the Runway to axe 10 percent of corporate jobs

Rent the Runway is to implement a workforce reduction, impacting 37 corporate positions, about 10 percent of its staff, and the resignation of COO and president Anushka Salinas, according to a filing with the U.S. Securities and Exchange Commission (SEC). The move is part of a strategic initiative to invest in growth areas such as marketing and...

Business

Rent the Runway posts decline in Q3 revenue

For the third quarter, Rent the Runway revenue was 72.5 million dollars, a 6.3 percent decrease, while gross profit was 25.2 million dollars, down 20.8 percent and gross margin was 34.8 percent. Net loss for the quarter contracted to 31.5 million dollars, while adjusted EBITDA dropped to 3.5 million dollars and adjusted EBITDA margin to 4.8...

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Rent the Runway revenues increase, targets 25 percent active subscriber growth

Rent the Runway (RTR) has welcomed positive financial results for FY22, notably achieving a 46 percent revenue growth as it completes its financial transformation. For the year ended January 31, 2023, the rental platform reported a revenue of 296.4 million dollars, up from 203.3 million dollars in FY21. While its gross profit also saw an...

Business

Rent the Runway to add extra item to each order in new customer initiative

Rent the Runway (RTR) has announced a new initiative which will see it add one extra item to every shipment under its rental subscription programme in a bid to evolve the customer experience. Entitled ‘Era of Extra’, the move comes as part of RTR’s ongoing strategy to reinvest in the customer, a multi-faceted factor that was introduced in the...

Business

Rent the Runway secures extended credit facility as part of debt restructuring

Rent the Runway (RTR) has announced an amended credit facility with its existing lender and administrative agent Double Helix, extending the maturity date from October 2024 to October 2026. The facility will also reduce cash interest payments, totalling over 20 million dollars in cash over the next two years. Previously set at 12 percent total...

Business

Rent the Runway’s Brian Donato to take on new chief revenue officer role

Rental platform Rent the Runway (RTR) has announced its chief supply chain officer Brian Donato will be assuming the newly created role of chief revenue officer, effective immediately. In response, Drew Rau, who is currently serving as VP, inventory performance, will be expanding his role to SVP, supply chain and inventory, becoming part of the...

Business

Rent the Runway partners with Amazon Fashion on pre-loved offer

Rent the Runway has announced a new partnership with Amazon Fashion which sees it launch a storefront on the marketplace’s website to sell a selection of its pre-loved and Design Collective apparel. Among the rental brand’s pre-loved merchandise will be hundreds of styles from over 35 brands, spanning casual wear, workwear, eveningwear and...

Rent the Runway raises outlook as Q3 revenue beats expectations

Rent the Runway has upped its full-year outlook after reporting a 31 percent increase in revenue in the third quarter of the year. The fashion rental platform made revenue of 77.4 million dollars in the three months to October 31, beating expectations as its active subscriber count increased 15 percent. The company narrowed its net loss to 36.1...

Business

Rent the Runway raises outlook as Q3 revenue beats expectations

Business

Rent the Runway reveals restructuring plan cutting 24 percent of corporate employees

Rental platform Rent the Runway (RTR) has unveiled a significant restructuring plan as part of its Q2 financial report which will see total reductions of approximately 24 percent of corporate employees. Next to further plans to reorganise functions and reallocate resources, the overall strategy hopes to help the company reduce costs, streamline...

Business

Rent the Runway partners with Google Cloud

Rent the Runway, which allows users to rent, subscribe, or buy designer apparel and accessories, has migrated its entire IT infrastructure and e-commerce platform to Google Cloud to meet the growing needs of its business. The move will allow the e-commerce platform to enhance the experience for its customers with improved platform reliability,...