Fri, Sep 6, 8:11 PM (316 days ago)
For the quarter ending July 31, 2024, Rent the Runway, Inc. reported a revenue of $78.9 million, a 4.2% increase from the previous year, driven primarily by subscription and reserve rental revenue. Active subscribers decreased to 129,073, reflecting a 6% decline year-over-year. The company's gross profit was $32.4 million, yielding a gross margin of 41.1%, down from 43.9% due to increased rental product depreciation and revenue share costs. The net loss narrowed to $15.6 million from $26.8 million in the same quarter last year, with an adjusted EBITDA of $13.7 million, indicating improved operational efficiency. The company continues to face challenges, including a competitive fashion market and reliance on consumer discretionary spending amid economic uncertainties. A restructuring plan initiated in January 2024 aims to generate $12 million in annual savings, while the 2023 Amended Temasek Facility has eliminated interest payments for six quarters, improving liquidity. However, material weaknesses in internal controls remain a concern. Cash and equivalents stood at $76.6 million as of July 31, 2024, with total debt at $319.8 million, raising questions about future capital needs and financial flexibility.