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]