What's Going On With Rent The Runway Stock Today?

Benzinga·04/15/2025 18:16:19

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Rent The Runway, Inc. (NASDAQ:RENT) shares are trading lower on Tuesday.

The company reported fourth-quarter GAAP earnings per share of $3.44 loss, missing the street view of $3.28 loss. Quarterly sales of $76.4 million (0.8% increase year over year) missed the analyst consensus estimate of $77.6 million.

Quarterly gross profit was $28.8 million, down 3.7% year over year. The gross margin was 37.7% compared to 39.4% in the year-ago period.

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Adjusted EBITDA was $17.4 million, higher than $11.2 million in the year-ago period. Adjusted EBITDA Margin was 22.8%, as compared to 14.8% in the fourth quarter of fiscal year 2023.

“After several years of increased financial discipline, we believe that RTR is now operating on steadier financial footing. We’ve significantly reduced our cash burn, which is a key proof point that we can operate a more sustainable business,” said Rent the Runway CEO Jennifer Hyman.

The company exited the quarter with cash and equivalents worth $77.4 million.

Long-term debt expanded to $333.7 million as of Jan. 31, compared with $306.7 million in the year-ago period.

Outlook: Rent the Runway expects active subscribers to grow by double digits in fiscal 2025 compared to 2024. The company projects free cash flow between negative $30 million and negative $40 million for the year.

For the first quarter of fiscal 2025, Rent the Runway expects revenue between $68 million and $70 million (estimate: $76.50 million).

Price Action: RENT shares are trading lower by 13.21% to $4.68 at last check Tuesday.

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