![]() ![]() Hyman is confident that Rent the Runway can capitalise on a shift to renting things from owning them that is disrupting other industries. The first-half net loss narrowed 3.8% year-over-year to $84.7m from $88m, while the annual loss widened 10% to $171.1m from 153.9m. On an annual basis, revenue fell to $157.5m from $256.9m. In the first half of its 2021 fiscal year, Rent the Runway’s revenue dropped 9.4% to $80.2m from $88.5m a year earlier. She contended that the company “has emerged stronger.” CEO confident about rental models The firm’s initial public offering raised 100M by selling some 6.3M Class A shares at the midpoint of their expected 15-17/share range. Rent co-founder and CEO Jennifer Hyman attributed the decline to the Covid-19 pandemic and the company’s “resulting fight for survival” in a memo accompanying the original and updated registration statements. Active subscribers plummeted 58.8% to 54,797 in 2020 from 133,752 a year earlier. The increases came after Rent’s total subscriber base, including paused memberships, dropped 35.6% to 95,245 in all of 2020 from 147,866 in 2019. ![]() Active subscribers skyrocketed 80% to 97,614 from 54,228 during the 12-month period. The company recovered some of its total subscribers in the first half of this year, posting a 16.6% increase year-over-year to 126,841 from 108,752. The company closed its five brick-and-mortar stores – in New York, Chicago, Los Angeles, San Francisco and Washington, DC – in 2020 and does not plan to reopen them. Stay on top of key volatility drivers like analyst upgrades and downgrades, earnings reports, or a high-profile hedge fund investment. The IPO effort comes as Rent the Runway, once a $1 billion company, struggles with recent losses. The cloud-based clothing rental company plans to list its class A common stock on the Nasdaq Global Select Market. Rent filed for a $100m IPO this month, with that amount serving as a placeholder. The proposed offering will only be made through a prospectus. Goldman Sachs, Morgan Stanley and Barclays are acting as lead bookrunners. Rent the Runway launched its IPO roadshow with potential investors Tuesday, the company said in a news release. The company rents women’s clothes on a monthly-subscription basis and sells items through its online platform. The company has not commented on its IPO date. The New York-based company plans to sell 15 million shares, Rent the Runway advised the US Securities and Exchange Commission on Monday 18 October in an amended IPO registration statement.Īn opening price at the top of the range would give the company a valuation of more than $1bn. Women’s clothing firm Rent the Runway has priced its IPO at $18 to $21 per share. However, unlike consumer offerings, such as Nest, Hive or Tado, the company’s product is targeting large landlords, initially within the social housing sector. US30 US Wall Street 30 (USA 30, Dow Jones) Switchee, an IoT startup based in London, has raised £1.3 million in pre-Series A funding for its smart thermostat and accompanying cloud-based service. ![]()
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