By Katherine Hamilton
Rent the Runway's stock rallied after the company returned to subscriber growth.
Shares climbed 31% to $8.86 on Friday, their highest price in more than three months. The stock up 5% this year.
The New York company, which allows customers to rent designer clothes, said after the close on Thursday it had returned to subscriber growth with 147,157 active subscribers at the end of the fourth quarter. Rent the Runway expects double-digit growth in its active subscribers at the end of the first quarter.
It is implementing a new strategy to more aggressively acquire inventory and get rid of old pieces. So far, the new effort seems to be working, Chief Executive Jennifer Hyman said.
"We made a big bet on new inventory and we've already seen higher customer engagement and retention," she said.
New inventory receipts increased 24% in the first quarter and are expected to more than double over the course of the year.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
June 06, 2025 13:03 ET (17:03 GMT)
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