Rent the Runway Inc. is starting a new chapter with a big increase in sales and narrower net losses.
The company — which saw Jennifer Hyman, its cofounder and leader, step down after 18 years last month — drove revenues up 29.2 percent to $87.8 million for the first quarter ended April 30. The quarter ended with an active subscriber count of 155,692, a 5.8 percent increase from a year earlier.
Add-on revenues were a big driver, gaining 70.4 percent in the quarter, which the company attributed to “higher subscriber engagement following a large inventory infusion and multiple product enhancements launched last year.”
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Net losses narrowed to $18.9 million from $26.1 million.
Rent the Runway, now controlled by Story3 and Nexus Capital Management, is on the hunt for a permanent successor for Hyman, but is not sitting idle.
Teri Bariquit, who spent 37 years in retail and merchandising at Nordstrom, was named interim CEO and the leadership team is starting to coalesce.
On Wednesday, Paige Thomas was named chief commercial officer. Thomas, who also has a Nordstrom background having spent 10 years at the retailer, was most recently chief merchant and product innovation officer at Signet Jeweler.
Additionally, Dave Loretta, former chief financial officer of The Honest Co. as well as Duluth Trading Co., was named interim CFO.
Bariquit said: “Rent the Runway is operating from a solid foundation, supported by a strong core business, a renewed capital structure aligned with our long-term ambitions, and diversified set of revenue streams. I’m honored to step into this leadership role at such an exciting moment. The team has built remarkable momentum, and this quarter’s results reflect the strength of a strategy that is clearly resonating with our customers.”
In April, the rental platform launched personalized product carousels that are now available to all subscribers. Renters can also now tap into a curated “For You” feed tailored for them.
“These enhancements are designed to reduce friction in discovery, save her time, and make every visit feel more personalized, and we are seeing a 11 percent increase in hearting behavior on the home page for active subscribers,” the company said.