Business

Rent the Runway files for IPO, revealing losses mounted during pandemic, but subscribers rebounding


Jennifer Hyman, Rent the Runway 

Scott Mlyn | CNBC

Rent the Runway filed for an initial public offering on Monday and revealed its subscriber base tumbled during the Covid pandemic but has since started to grow again.

The digital clothing rental platform also showed its losses mounted in 2020, and sales took a hit from fewer women refreshing their wardrobes.

Last year, Rent the Runway’s entire base of subscribers — including those who had paused their memberships — totaled 95,245, compared with 147,866 in 2019. It counted 54,797 active subscribers last year, down from 133,572 in 2019.

This year, however, the company has started to win some customers back. Rent the Runway counted 126,841 total subscribers in the six months ended July 31, compared with 108,752 in the same six-month period in 2020. It had 97,614 active subscribers over that time frame, compared with 54,228 in 2020.

The company’s revenue fell to $157.5 million last year, from $256.9 million in 2019.

Its net loss amounted to $171.1 million in 2020, more substantial than the $153.9 million net loss it booked in the prior year.

Read the complete S-1 filing with the SEC here.

This story is developing. Please check back for updates.

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