Rent the Runway files for IPO, revealing losses mounted during pandemic, but subscribers rebounding

Rent the Runway files for IPO, revealing losses mounted during pandemic, but subscribers rebounding

Rent the Runway filed for an initial public offering on Monday and its subscriber base tumbled during the Covid pandemic but has since started to grow again. The digital clothing rental platform also showed its losses mounted in 2020 and sales took a hit from fewer women refreshing their wardrobes. The company plans to list on Nasdaq with the ticker symbol "RENT." Last year, Rent the Runway's entire base of subscribers — including those who had paused their memberships — totaled 95,245, compared with 147,866 in 2019. It counted 54,797 active subscribers last year, down from 133,572 in 2019. This year, however, the company has started to win some customers back. Rent the Runway counted 126,841 total subscribers in the six months ended July 31, compared with 108,752 in the same six-month period in 2020. It had 97,614 active subscribers over that time frame, compared with 54,228 in 2020. "We couldn't have foreseen the global pandemic and the resulting fight for our survival," said Jenn Hyman, its co-founder and CEO, in a memo included in the . "Today, Rent the Runway has emerged stronger." The company's revenue fell to $157.5 million last year, from $256.9 million in 2019. Its net