Rent the Runway Q3 sales dip over 6%

Rent the Runway announced on Tuesday revenues for the third quarter were $72.5 million, a 6.3% decrease year-over-year.

The New York-based company said average active subscribers grew 4% for the fiscal quarter ended October 31, with total subscribers reaching 175,901, roughly flat year-over-year.

During the quarter, net loss narrowed to $31.5 million, as compared to a loss of $36.1 million in the third quarter of fiscal year 2022.

“We are proud to announce significant modifications to our debt that are expected to provide meaningful flexibility for our business. We believe that the terms that we’ve agreed to with our longtime lender further enable Rent the Runway to achieve significant free cash flow before the debt’s maturity date, helping us to demonstrate the strength of our business model to the market–and, importantly, to grow,” said Jennifer Hyman, co-founder and CEO, Rent the Runway. 

“Meanwhile, we’ve made significant strides to improve our inventory in-stock position, which we believe represents a turning point for Rent the Runway. We believe nailing our assortment is a key unlock to subscriber growth in 2024 and beyond, and we have data to indicate that the adjustments we’ve made have already resulted in improved customer retention and satisfaction.”

Rent the Runway also highlighted key business achievements, including progress in customer inventory experience, the launch of Luxury Evening Wear through ‘The Vault’, improvements in operating efficiencies, growth in the resale business, and record adoption of the RTR Concierge service.

Looking ahead, Rent the Runway has forecast revenue of at least $74 million, for the fourth quarter of fiscal year 2023. For the full fiscal year 2023, the company expects revenue of at least $296.4 million, matching fiscal year 2022 revenue.