Rent the Runway expects full-year revenue below estimates, shares fall 4%

The Rent The Runway store, an online subscription service for women to rent designer clothes and accessories, is seen in New York City, New York, U.S., September 12, 2019. REUTERS/Shannon Stapleton

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April 13 (Reuters) – Rent the Runway (RENT.O) forecast annual revenue below Wall Street estimates on Wednesday, sending shares of the clothing rental company down 4% in extended trading.

The optimistic outlook comes at a time when fashion retailers are expected to benefit from a post-COVID recovery in demand for apparel and formal wear, as the United States prepares for the highest number of ceremonies since 1984 after that the pandemic has delayed weddings and other social events. events. Read more

Rent the Runway expects annual revenue of between $295 million and $305 million, below estimates of $305.02 million, according to IBES data from Refinitiv.

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The company reported a 91% increase in revenue to $64.1 million for the fourth quarter, above estimates of $63.22 million.

Active subscribers to the company’s fashion rental service grew more than 110% to 115,240 in the quarter.

With Wednesday’s after-hours drop, the stock is down more than 70% from its October initial public offering price.

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Reporting by Akash Sriram and Deborah Sophia in Bengaluru; Additional reporting by Noel Randewich in New York; Editing by Maju Samuel

Our standards: The Thomson Reuters Trust Principles.


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