Shares of Rent the Runway took a hit on Wednesday as the company projected a decline in revenue for the fiscal fourth quarter. The stock plummeted by 26%, currently valued at 49 cents, marking an 83% drop since the beginning of the year, making it the company's worst year on record.

In their latest earnings report, Rent the Runway stated that they expect fourth-quarter revenue to be at least $74 million, down from $75.4 million reported in the same period last year. This projection aligns with analysts' forecast of $74.2 million.

While the company maintained its revenue outlook for the year at $296.4 million, they did withdraw their free cash flow guidance. However, Rent the Runway still anticipates achieving positive free cash flow in the upcoming year.

Jennifer Hyman, CEO of Rent the Runway, stated, "I want to be clear that we believe our lack of growth in 2023 is a temporary problem, primarily driven by the inventory depth issue that we explained in detail last quarter." The company has been working on improving their assortment and inventory depth, which has had a positive impact on the customer experience.

Despite the current setback, Rent the Runway remains optimistic about their future prospects and is determined to overcome their challenges.

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