Rent the Runway Shares Plunge as Revenue Falls Short
Rent the Runway shares took a sharp nosedive on Friday morning following disappointing revenue numbers for the latest period and a gloomy forecast for the third quarter.
As of 9:59 a.m. ET, shares were plummeting by 32% to just 93 cents, having briefly dipped to 86 cents earlier in the day, setting a new low for the past 52 weeks.
The subscription-based fashion service reported a 1% decline in revenue, reaching $75.7 million by the end of July. This figure fell short of expectations, as analysts surveyed by FactSet had predicted an increase to $78.1 million.
Fortunately, the company did manage to narrow its net loss to $26.8 million, or 40 cents per share, compared to the prior-year period where they incurred a loss of $33.9 million, or 53 cents per share—a result that was in line with projections.
Regrettably, Rent the Runway expects this downward trend to persist in the next quarter. The forecasted revenue range is projected to be between $72 million and $74 million, a decrease from the $77.4 million reported in the third quarter of the previous year.
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