PARIS — French high-street brand Pimkie’s announcement that it will partner with Chinese ultra-fast-fashion company Shein through its Xcelerator program has sent shockwaves through the fashion industry and is now facing legal action. Founders and former owners of Pimkie, Association Familiale Mulliez, announced it will file suit against the company alleging the Shein deal violates the terms of Pimkie’s 2023 sale and misuses 140 million euros of the funds made available to preserve the brand’s autonomy and ...

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]