Rent the Runway (RENT) starting trading above its IPO price on Wednesday. The stock opened at $23 per share after the fashion rental company priced its debut at $21 each, at the top of its marketed range.
The company raised $357 million in the public offering.
Rent the Runway offers subscribers “the world’s largest shared closet” of over 18,000 styles by more than 750 designer brands.
The company says its average customer wears clothes worth more than 20 times than the cost of monthly RTR subscription on an annualized basis.
“We have become an everyday utility; our average subscriber wears Rent the Runway 83 days per year,” according to the company’s S-1 filing.
The pandemic adversely affected the company’s subscriber base and revenue. Total revenue in fiscal year 2020 declined 38.7% to $157.5 million, compared to $256.9 million in the prior year.
However the company has seen a rebound in subscribers and revenue quarter over quarter as lockdowns eased and people have gone about their daily lives citing, “Our revenue increased 39.4% from $33.5 million for the three months ended April 30, 2021 to $46.7 million for the three months ended July 31, 2021.”
“Our total subscribers as of September 30, 2021, grew to 143,464 subscribers including paused and active subscribers representing 97% of the total subscribers at the end of fiscal year 2019,” reads the prospectus.
Rent the Runway said in August and September of this year, “Approximately 50% of use cases have been more casual in nature — weekend wear, everyday casual occasions, lounge and outerwear — and approximately 50% for work and evening.”
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