As consumers demand more frictionless experiences from their eCommerce merchants, Rent the Runway is seeing its digital rethink drive higher retention.The company shared in a presentation Wednesday (April 10), alongside its fourth quarter and full year fiscal 2023 financial results, that it saw loyalty rise 10% year over year following improvements to the user experience on its digital platforms.“[We] will be … continuing the digital product innovation we started in 2023 to drive increases in conversion and ...

Financial Performance - Q4 2023 revenue was $75.8 million, a 0.5% increase year-over-year from $75.4 million in Q4 2022[4] - Q4 2023 adjusted EBITDA was $11.2 million, with an adjusted EBITDA margin of 14.8%, up from $7.1 million and 9.4% in Q4 2022[4] - Fiscal year 2023 revenue was $298.2 million, a 0.6% increase year-over-year from $296.4 million in fiscal year 2022[7] - Fiscal year 2023 net loss was $(113.2) million, an improvement from $(138.7) million in fiscal year 2022, with a net loss margin of (38.0)% compared to (46.8)%[7] - Average active subscribers for fiscal year 2023 increased by 5% year-over-year to 135,211[7] - Total revenue for the three months ended January 31, 2024, was $75.8 million, a slight increase from $75.4 million in the same period of 2023[26] - Net loss for the year ended January 31, 2024, was $113.2 million, compared to a net loss of $138.7 million in 2023, showing an improvement[28] - For the three months ended January 31, 2024, the net loss was $24.8 million, compared to a net loss of $26.2 million for the same period in 2023[32] Cash Flow and Liquidity - The company expects to achieve free cash flow breakeven for the full year of fiscal 2024[9] - Cash and cash equivalents at the end of the period were $84.0 million, down from $154.5 million in the previous year[30] - Free Cash Flow for the year ended January 31, 2024, was $(70.3) million, an improvement from $(92.0) million in 2023, indicating better cash management[34] - The Free Cash Flow Margin improved to (23.6)% for the year ended January 31, 2024, compared to (31.0)% in 2023, showing a positive trend in cash flow generation[34] Operational Efficiency - Adjusted EBITDA for the year ended January 31, 2024, was $26.9 million, significantly up from $6.7 million in 2023, reflecting an improvement in operational efficiency[36] - Adjusted EBITDA margin and free cash flow expectations for Q1 2024 and fiscal year 2024 are not available without unreasonable efforts due to high variability and complexity[21] Customer Metrics - The company reported a 20-point increase in Subscription Net Promoter Scores from Q2 2023 to Q4 2023, indicating improved customer loyalty[7] - The Concierge Program has grown to nearly 40% of early-term customers, driving higher loyalty and ready for continued scale[9] Assets and Liabilities - Total assets decreased to $278.5 million as of January 31, 2024, from $336.2 million in 2023[24] - Total liabilities increased to $400.8 million in 2024, compared to $371.5 million in 2023[24] Expenses and Charges - The company incurred restructuring charges of $2.0 million for the year ended January 31, 2024[26] - The company incurred restructuring charges of $2.0 million for the year ended January 31, 2024, compared to $2.4 million in 2023, indicating a reduction in restructuring costs[36] - The company reported a cash interest expense of $4.7 million for the year ended January 31, 2024, down from $20.1 million in 2023, reflecting improved debt management[36] Depreciation and Compensation - Rental product depreciation increased to $57.1 million for the year ended January 31, 2024, compared to $52.9 million in 2023, indicating higher asset utilization[36] - Share-based compensation for the year ended January 31, 2024, was $26.2 million, up from $25.4 million in 2023, reflecting ongoing employee incentive programs[36] Interest Income - Interest income for the year ended January 31, 2024, was $33.7 million, slightly down from $36.8 million in 2023, reflecting changes in interest rates[36] Non-recurring Adjustments - Non-recurring adjustments for the year ended January 31, 2024, totaled $1.7 million, primarily related to debt refinancing, compared to $1.3 million in 2023[36]

Exceeded Revenue and Adjusted EBITDA Guidance for Q4 2023 Expect Revenue Growth in FY 2024 through Focus on Marketing, Product Innovation and Strong Customer Retention. Committed to Achieving Free Cash Flow Breakeven for FY 2024. Q4 2023 Net Loss of $(24.8)M and Net Loss Margin of (32.7)%, vs. $(26.2)M and (34.7)% in Q4 2022 Adjusted EBITDA of $11.2M and Adjusted EBITDA Margin of 14.8% in Q4 2023, Up From $7.1M and 9.4% in Q4 2022 Healthy Inventory In-Stock Position Exiting FY 2023 has Driven Strong Custome ...

Business Overview and Market Trends - Rent the Runway (RTR) operates in the U S apparel market, which is valued at $359 billion[7], focusing on the online segment, a $165 billion market growing at a 9% compound annual growth rate (CAGR)[7, 22] - The secondhand apparel market is a key area of focus, representing a $43 billion market with a 24% CAGR[7, 22] - RTR's subscribers receive approximately $4,000 worth of designer clothing per month, which is about 25 times the value of their spending[7] - Over 80% of RTR's revenue is generated from subscribers[12] Customer Base and Engagement - RTR has 2.5 million lifetime customers and 126,000 current subscribers[15] - 74% of women spend more on clothing annually compared to their male counterparts[19] - 77% of RTR subscribers consider sustainability important when purchasing clothing[19] - 83% of subscribers say RTR makes them the most confident version of themselves[43] - Over 40% of RTR subscribers have embellishments[41] - Approximately 20% of RTR subscribers are the color black[41] - Over 50% of RTR subscribers have printed styles[41] Financial and Operational Highlights - The company anticipates achieving free cash flow breakeven in 2024[7] - Fulfillment costs as a percentage of revenue have decreased by 17 percentage points since 2019[89] - In FY23, 61% of items were acquired through non-wholesale channels, compared to 26% in FY19[58] - Since its founding, less than 10% of total revenue has been spent on marketing[43]

NEW YORK, March 20, 2024 (GLOBE NEWSWIRE) -- Rent the Runway, Inc. (“Rent the Runway”) (Nasdaq: RENT) announced today that it expects to release its fourth quarter and fiscal year 2023 financial results for the quarter and year ended January 31, 2024, on Wednesday, April 10, 2024, after market close. Rent the Runway will host a conference call and live webcast with the investment community at 4:30 p.m. Eastern Time that same day to discuss its results and to provide a business update. The financial results ...

NEW YORK, March 20, 2024 (GLOBE NEWSWIRE) -- Rent the Runway, Inc. (“Rent the Runway”) (Nasdaq: RENT) announced today that it expects to release its fourth quarter and fiscal year 2023 financial results for the quarter and year ended January 31, 2024, on Wednesday, April 10, 2024, after market close. Rent the Runway will host a conference call and live webcast with the investment community at 4:30 p.m. Eastern Time that same day to discuss its results and to provide a business update. The financial results ...

NEW YORK, Feb. 28, 2024 (GLOBE NEWSWIRE) -- Rent the Runway (RTR) today announced the appointment of Natalie McGrath as Chief Marketing Officer, effective March 4, 2024. McGrath will oversee all aspects of the Rent the Runway customer journey, including brand and growth marketing, creative services, public relations, and customer service. She will report to Co-Founder, CEO and President Jennifer Hyman. McGrath's appointment comes at a pivotal time for Rent the Runway, which has spent the past several years ...

Rent the Runway, Inc. (RENT) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power of a chang ...

Rent the Runway, a fashion rental company, has undergone adjustments, including a 10% reduction in its corporate workforce. However, the question arises: Is this indicative of a struggling company, or is it merely a recalibration? Apparel subscriptions, known for their high loyalty, have been reported to be the most steadfast. The company has said it does indeed have loyal customers, translating to higher profitability. The company’s chief operating officer and president, Anushka Salinas, is also set to lea ...

Clothing-Rentals  (AP Photo/Seth Wenig)Copyright 2019 The Associated Press. All rights reserved.Rent the Runway announced that it is eliminating 37 corporate positions and COO Anushka Salinas will leave the company on January 31. Her resignation comes on the heels of a company restructuring. These actions are on top of earlier staff cuts made last September.Jennifer Hyman, CEO, and chair of the board, explained that these steps were taken to help the company restore the growth and achieve profitability.Rent ...