The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
The luxury rental company reported revenue of $67.1 million for the first quarter of 2022, up from $33.5 million in 2021. Gross margin was up by 9 points year-over year. Active users rose year-over-year from 74,018 to 134,998, slightly above pre-pandemic levels. Net loss, too, was up compared to 2021: $42.5 million versus $42.3 million.
Rent the Runway still projects 45 to 50 percent year-over-year revenue growth in 2022, representing $295 million to $305 million.
Learn more:
Rent the Runway’s Long Road Ahead to Profitability
The rental platform’s revenue is up from last year — with the number of active subscribers more than doubling — but both figures still remain below pre-pandemic levels.
Joan Kennedy is Editorial Associate at The Business of Fashion. She is based in New York and covers beauty and marketing.
Fast-growing start-ups like Hettas, Saysh and Moolah Kicks created sneakers designed specifically for active women. The sportswear giants are watching closely.
The companies agreed to cap credit-card swipe fees in one of the most significant antitrust settlements ever, following a legal fight that spanned almost two decades.
In an era of austerity on Wall Street, apparel businesses are more likely to be valued on their profits rather than sales, which usually means lower payouts for founders and investors. That is, if they can find a buyer in the first place.
The fast fashion giant occupies a shrinking middle ground between Shein and Zara. New CEO Daniel Ervér can lay out the path forward when the company reports quarterly results this week.