Shares of Rent The Runway will debut on the Nasdaq Wednesday at $21 apiece, the high end of its target. Great news for the clothing rental and subscription company’s CEO, Jennifer Hyman, whose 5.1% ownership stake is worth about $48.9 million,estimates, more than a decade after she cofounded the business with her former classmate Jennifer Fleiss. Though Fleiss left the company in 2017, she still holds just under a 1% stake in Rent The Runway, worth an estimated $12 million.
Rent The Runway cofounders Jenny Fleiss and CEO Jenn Hyman ; Hyman took the clothing rental company public on Wednesday.Rent The Runway is hoping public markets will lift the firm back to unicorn status. In April 2020, the company took a $100 Series G investment that provided much-needed cash amid the Covid-19 crash—but that fundraising came at an $800 million valuation, down from a previous $1 billion, according to data provider PitchBook.
Revenue for fiscal year ended January 31, 2021 was $157.5 million, down 39% from the preceding pre-pandemic year; the company posted a net loss of $171.1 million. Sales began looking up this summer, as revenue increased 39% for the three months ended July 31 compared to the previous quarter ended April 31. Nonetheless, the company still lost money. It had an $84.
But the company’s monthly subscription business, which accounts for 83% of sales, is rebounding. After the number of active subscribers plummeted from 134,000 to 55,000 between January 2020 and January 2021, it recovered to roughly 98,000 this summer.
Ireland Ireland Latest News, Ireland Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: WSJ - 🏆 98. / 63 Read more »
Source: ABC - 🏆 471. / 51 Read more »
Source: WSJ - 🏆 98. / 63 Read more »