Jennifer Hyman, CEO and co-founder of Rent the Runway, has announced financial results that have surprised Wall Street. Forecasts for 2024 indicate that the company should break even in terms of free cash flow while continuing to grow. This announcement is all the more remarkable in a fashion sector often marked by investor scepticism.

The company is forecasting significant growth of 35% in its resale business by 2023.  These successes are the result of strategic decisions, including improving the customer experience and increasing the depth of inventory, which has helped to reduce churn.

Hyman points out that inventory represents a major competitive advantage for Rent the Runway, with costs well below those of traditional retailers. The company also stands out for its revenue sharing model, where a large proportion of inventory in 2024 will come from partnerships that do not require significant upfront investment, strengthening brand relationships and driving new customer acquisition.

In a difficult economic climate marked by high interest rates, Rent the Runway restructured its debt in December 2023, improving its financial position and its relationship with its lender. This strategy aims to optimise free cash flow to support sustainable growth.
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