default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Rent the Runway Aims for Nearly $1.3 Billion Valuation in IPO

A rack of clothing, including red, floral pattern and sequin dresses.
Holiday clothes for rent at Rent the Runway. | Courtesy (Courtesy)

Rent the Runway is aiming for a valuation of nearly $1.3 billion in its US initial public offering, as the fashion rental company looks to cash in on the rising interest in pre-owned clothing.

The company, founded in 2009, lets users rent and shop second-hand clothes and accessories such as handbags and jewellery in over 18,000 styles from more than 750 designer brands. It also allows customers to rent and shop home goods.

Rent the Runway plans to sell 15 million shares priced between $18.00 and $21.00 apiece in its IPO, raising $315 million, according to a filing.

Earlier this month, the Brooklyn, New York-based company disclosed a near 39 percent drop in revenue for the fiscal year 2020. Its top line also took a hit in the first half of this fiscal year, with revenue down 9 percent for the period ended July 31.

Rent the Runway said its active subscribers more than doubled to 111,732 in the first nine months of 2021.

Demand for second-hand clothes has jumped in recent months as customers become increasingly conscious about their carbon footprint, boosting revenues at styling service Stitch Fix and online resale shop ThredUp.

Goldman Sachs & Co, Morgan Stanley and Barclays are the lead underwriters for the offering. Rent the Runway will list its stock on the Nasdaq under the symbol “RENT.”

By Noor Zainab Hussain; Editors: Maju Samuel and Subhranshu Sahu.

Learn more:

Rethinking the Fashion Rental Model for the Post-Pandemic Era

Rent the Runway chief executive Jennifer Hyman shares her strategy for making the fashion rental model work as retail, restaurants and workplaces slowly begin to re-open.

In This Article

© 2023 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Financial Markets
A financial lens on the ebb and flow of the fashion sector.

L Catterton, the private-equity firm with close ties to LVMH and Bernard Arnault that’s preparing to take Birkenstock public, has become an investment giant in the consumer-goods space, with stakes in companies selling everything from fashion to pet food to tacos.


Any fashion company that is contemplating going public needs to have not only the product and brand fundamentals right but also a business strategy that can easily be understood by the markets, writes Imran Amed.



view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
Enjoy 25% off BoF Professional Membership Until December 19
© 2023 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
Enjoy 25% off BoF Professional Membership Until December 19