Rent the Runway on Monday made public its paperwork for a stock market flotation in the United States, disclosing a near 39 percent drop in revenue for the fashion rental company last year.
The company reported revenue of $157.5 million for the fiscal year 2020, down from $256.9 million a year earlier. Its net loss widened to $171.1 million in the same period, from $153.9 million a year earlier.
Rent the Runway, which was founded in 2009, lets users rent clothes and shop second-hand merchandise from over 750 designer brands. It had confidentially filed for a listing in July. Goldman Sachs & Co, Morgan Stanley and Barclays are the lead underwriters for the offering.
By Niket Nishant; editor: Shailesh Kuber
Covid-19 crushed the market for fashion rentals, but platforms are betting that pent-up demand for social events and sustainability will boost post-pandemic business.