How Rent the Runway’s New Leadership Wants to Rewire Rental - Yahoo Finance Singapore
Article excerpt
As the world obsesses over AI, pumping endless time and money into the next revolution, the obsessions and revolutions of the past are still there lingering - and some might finally be ready to flower away from the spotlight. Rent the Runway Inc. is Exhibit A. More from WWD EXCLUSIVE: Frame Opens Amsterdam Flagship as It Eyes Expansion Fashion Cities Unite to Accelerate Sustainability, Launching New Global Coalition Shoe Factory Fire in China Kills At Least 28 Jennifer Hyman, the company's cofounder and now former chief executive officer, spent 17 years recasting the concept of fashion rental, creating a new category and trying to build a profitable business on the public market. It was a heavy lift. Lately, though, the company has seen some progress. Revenues jumped 7.7 percent to $329.8 million last year, with an average of 143,558 active subscribers, and net earnings of $22.6 million. The business continued to grow in the first quarter. But since its founding, the firm has an accumulated deficit of $1.1 billion. That loss - as real as it is - is the glass-half-full view of Rent the Runway. Peter Comisar - managing partner of Story3, which was part of a group that took control of and recapitalized the company last year - sees the glass as at least half full. "We're inheriting a business that's had a tremendous amount of capital spent and know-how spent over 17 years,"...
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The exact course of that journey will depend on who the company picks to succeed Hyman, who left in May, as CEO.