Jennifer Heymann rents a runway
Scott Murin | CNBC
Borrowing the runway submitted for an initial public offering on Monday, clearly Its subscriber base fell during Covid’s pandemic, but then began to grow again.
Sales of digital clothing rental platforms also suffered as losses expanded in 2020 and fewer women refreshed their wardrobes.
The company plans to list on the NASDAQ under the ticker symbol “RENT”.
Last year, Rent the Runway’s overall subscriber base (including those who suspended membership) grew from 147,866 in 2019 to a total of 95,245. Last year, the number of active subscribers was 54,797, down from 133,572 in 2019.
But this year, the company has begun to regain some of its customers. Rent the Runway had a total of 126,841 subscribers for the six months ending July 31 compared to 108,752 for the same six months in 2020. The number of active subscribers during that period was 97,614, compared to 54,228 in 2020.
“We couldn’t foresee a pandemic and the resulting battle for survival,” said co-founder and CEO Jennifer Hyman. SEC filing.. “Today, Rent the Runway is more powerful.”
The company’s revenue fell from $ 256.9 million in 2019 to $ 157.5 million last year.
The net loss in 2020 was $ 171.1 million, more than the $ 153.9 million net loss recorded in the previous year.
During the six months ending July 31, Rent the Runway lost $ 84.7 million in revenue of $ 80.2 million.
The company cites the importance of rapid growth and sustainability of online shopping as favorable factors. However, Rent the Runway states in S-1 filing that consumer clothing rental and resale needs to be “normalized” in order to continue to expand its subscriber base.
Founded in 2009, Rent the Runway is an online platform that offers users multiple subscription options for monthly rental of designer clothing and accessories. For example, a subscriber can rent 8 items per month for $ 99 per month for the first two months and then $ 135 per month thereafter.
Rent a runway during a pandemic Closed existing physical store With retail stores Review subscription plan, Abolish unlimited options.Also Enter the resale market, No membership required to purchase items on that site.
Rent the Runway said it plans to enter a new category and expand internationally in order to increase future sales.
When publishing, Rent the Runway will participate in things like Posh mark When Thread upIt also appeals to consumers who are interested in sustainable shopping.And it comes after eyeglass retailers Warby Parker has been released Through the direct list last week.Sustainable shoe brand Allbirds also has the expected IPO in the pipeline..
Last fall, Rent the Runway raised $ 750 million and lost $ 1 billion. Unicorn status It settled in 2019.
Rent the Runway secretly submitted its listing in July.
Goldman Sachs, Morgan Stanley and Barclays are the main underwriters for their products.
Read the complete S-1 filing to the SEC here..
Borrow a runway file for an IPO and reveal the losses mounted during a pandemic
Source link Borrow a runway file for an IPO and reveal the losses mounted during a pandemic