Rent The Runway Active Subscribers Reach All-Time High, Losses Decrease — Retail Bum

Rent the Runway is experiencing a steady resurgence in business following years of sluggish growth, with the company narrowing its losses and reporting an increase in revenue.

During the first quarter of 2023, the rental service achieved year-over-year (yoy) growth in quarterly revenue, reaching $74.2 million, representing a 10.6% increase compared to the previous year’s $67.1 million. This growth was accompanied by a significant rise in active subscribers, setting a new record of 145,220, surpassing both the figures from the same period last year (134,998) and the pre-pandemic levels.

The company also managed to lower its losses to $30.1 million, an improvement from the $42.5 million in loss it reported during the corresponding period in the previous year.

Despite its improved financial performance, Rent the Runway is still faced with numerous challenges, complicating its profitability path.

Even though the company is experiencing strong demand for rentals amid high inflation, inventory availability remains a hurdle. Moreover, some highly sought-after items are quickly rented out, making accessing them difficult for all subscribers.