Rent the Runway Shares Surge After Fashion Rental Company Reports Stronger Quarterly Sales

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Rent the Runway beat quarterly revenue expectations, as customers opted to borrow designer clothes instead of buying them.

, stood by their guidance, but said shoppers have become more choosy and interested in sales.

Rent the Runway is also still chasing profitability. It announced layoffs in September as part of a cost-cutting plan. It said it would reduce its corporate headcount by about 24% by the end of the fourth quarter. The plan will amount to $25 million to $27 million in annual savings, the company said.

Hyman said Rent the Runway customers are not just looking to save money. They also need more variety in their wardrobes, as they dress up for work, parties and everyday outings again.

 

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