Rent the Runway announced on Friday revenues for the second quarter was $75.7 million, down 1%, as the U.S. the fashion rental platform saw an uptick in active subscribers and narrowed losses during the three months.
The New York-based company recorded an 11% uptick in active subscribers to 137,566, while total subscribers grew 6% to 184,389 during the three months ending July 31.
During the quarter, net losses narrowed to $26.8 million, as compared to a loss of $33.9 million in the second quarter of fiscal year 2022.
“For some time, we have been focused on taking decisive actions with the goal to bring Rent the Runway to profitability, and we believe now is the right time to accelerate our efforts. We made significant progress in Q2 across the bottom line, exceeding our profitability guidance, and with adjusted EBITDA margins hitting a historic high at 10.2%,” said Jennifer Hyman, co-founder and CEO, Rent the Runway.
“We believe that a key part of achieving our profitability milestone is prioritizing the medium and long-term health of the business over short-term revenue gains and lower margin customers. Above all, we are empowering our leaders to make the right decisions in service to this goal and in service to our customers and investors, and look forward to continuing to capture what we believe is a significant market opportunity ahead.”
Looking ahead, Rent the Runway has forecast revenue of at least $296.4 million for the fiscal 2023 year.
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