Rent the Runway Q3 revenue up 4.7%, losses narrow (#1685284)

Rent the Runway announced on Monday revenues climbed 4.7% in the third quarter reaching $75.9 million. 

The New York-based company said average active subscribers was down 3%, for the fiscal quarter ended October 31, with total subscribers reaching 174,511.

During the quarter, net loss narrowed to $18.9 million, as compared to a loss of $31.5 million in the third quarter of fiscal year 2023.

“Rent the Runway’s underlying business trends have continued to improve in Q3 2024. Revenue growth improved for the fourth consecutive quarter and ending active subscribers returned to year over year growth. Our reserve and resale offerings continued to show improved momentum in Q3. We have also demonstrated, through the first nine months of this fiscal year, an ability to significantly improve free cash flow and drive progress towards our goal to be free cash flow breakeven for FY24,” said Sid Thacker, chief financial officer, Rent the Runway.

“We are now squarely focused on accelerating growth in our Subscription business by listening to customers and making decisions that lay the foundation for stronger growth in FY25 and beyond.”

Looking ahead, Rent the Runway has forecast revenue between $74.4 million and $80.3 million, for the fourth quarter of fiscal year 2024. For the full fiscal year, the company expects revenue growth of between 2% to 4% versus fiscal year 2023. 

Coinciding with the results, Rent the Runway also announced the launch of a two season partnership with the Dallas Cowboy Cheerleaders that kicks off this month with a holiday campaign.