Fashion rental firm Rent the Runway discloses drop in income in IPO submitting

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Oct 4 (Reuters) – Fashion rental firm Rent the Runway on Monday made public its paperwork for a U.S. inventory market flotation, becoming a member of a bunch of shops seeking to money in on the file increase in capital markets since final yr.

In its filing with the U.S. Securities and Exchange Commission, the Brooklyn, New York-based firm disclosed a close to 39% drop in income for the fiscal yr 2020.

Rent the Runway, which was based in 2009, lets customers hire garments and store second-hand merchandise from over 750 designer manufacturers. It had confidentially filed for an inventory in July. learn extra

The firm reported 2020 income of $157.5 million, down from $256.9 million a yr earlier. Its web loss widened to $171.1 million in the identical interval, from $153.9 million a yr earlier.

The firm’s top-line additionally took successful within the first half of this fiscal yr, with income down 9% for the six months ended July 31.

Rent the Runway raised funds final yr at a valuation of $750 million, beneath its earlier valuation of $1 billion, Bloomberg News reported in June. (https://bloom.bg/3mt348h)

Demand for second-hand garments has jumped in current months as clients grow to be more and more aware about their carbon footprint, boosting revenues at subscription-based styling service Stitch Fix (SFIX.O) and on-line resale store ThredUp (TDUP.O).

Positive investor sentiment and fertile market situations for brand new listings additionally helped different retailers like eyewear firm Warby Parker (WRBY.N) and Roger Federer-backed shoemaker On Holding AG (ONON.N) ace their market debuts final month. learn extra

Goldman Sachs & Co, Morgan Stanley and Barclays are the lead underwriters for the providing. Rent the Runway will record its inventory on Nasdaq below the image “RENT”.

Reporting by Niket Nishant in Bengaluru; Editing by Shailesh Kuber

A person moves through clothing in the storage area at Rent the Runway's