The US fashion rental company Rent the Runway Inc. missed market expectations in the third quarter of the 2023/24 financial year. In an interim report published on Tuesday evening, the company highlighted that it had made progress with its reforms and improved its product range. In addition, it gained “important financial flexibility” by agreeing new loan conditions.
In the period from August to October, sales were 72.5 million US dollars (67.3 million euros), 6.3 percent below the level of the same quarter of the previous year. Revenue from the rental service fell by almost six percent to $64.7 million.
Cost reductions and the elimination of restructuring costs, which had burdened earnings in the same period last year, ensured that the operating loss was reduced from 27.0 to 21.9 million US dollars. The net deficit fell by almost 13 percent to 31.5 million US dollars (29.2 million euros).
Management left its sales forecast for the entire 2023/24 financial year unchanged. It is still expected that total revenue will at least reach the previous year’s level of $296.4 million.