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Rent the Runway (RENT)
NASDAQ:RENT
Earnings Data
Report Date
Apr 15, 2025TBA Not Confirmed
Period Ending
2024 (Q4)Consensus EPS Forecast
-2.25Last Year’s EPS
-7.02Same Quarter Last Year
Moderate Buy
Based on 1 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Dec 09, 2024
|% Change Since: -63.10%
|Next Earnings Date:Apr 15, 2025
Earnings Call Sentiment|Neutral
The earnings call highlighted significant improvements in debt restructuring and customer experience, coupled with strong brand partnerships and inventory strategy. However, these positives were balanced by challenges in achieving revenue growth and declines in gross margin, leading to a cautious outlook.Company Guidance
During Rent the Runway's Q3 2023 earnings call, the company disclosed significant financial adjustments and strategic plans aimed at stabilizing and growing the business. They announced modifications to their debt terms, eliminating both PIK and cash interest for six quarters starting Q4 2023, thereby reducing total interest expenses by $66 million over this period. The minimum liquidity covenant was lowered from $50 million to $30 million, providing additional financial flexibility. Rent the Runway aims to reach free cash flow breakeven in fiscal year 2024, despite ending Q3 with 131,725 active subscribers and revenue of $72.5 million, a 6.3% year-over-year decrease. The company is focusing on inventory depth improvements, which have already increased in-stock rates by 1,400 basis points from Q2, leading to higher customer satisfaction and retention. Adjusted EBITDA for the quarter was reported at $3.5 million, or 4.8% of revenue, with expectations for fiscal year 2023 revenue to be at or above $296.4 million, maintaining an adjusted EBITDA margin guidance of 7% to 8%.Debt Restructuring and Financial Flexibility
Significant modifications to debt terms: elimination of PIK and cash interest for 6 quarters, reducing interest expense by $66 million, and lowering the minimum liquidity covenant from $50 million to $30 million.
Improved Customer Experience and Loyalty
Increase in subscription Net Promoter Scores to the highest levels since pre-COVID, a 40% reduction in inventory as a reason for churn, and a 50% year-over-year increase in purchase rate.
Enhanced Inventory Strategy
Improved inventory depth by 1.7x in the second half of 2023, leading to a 1,400 basis point increase in in-stock rates compared to Q2, and a 30% increase in hearts on new inventory.
Brand Relationships and Product Offerings
Launch of luxury evening wear category and strong brand partnerships with 50% of first-half 2024 inventory acquired via pay-for-performance.
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RENT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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RENT Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Dec 09, 2024 | $12.82 | $10.02 | -21.84% |
| Sep 05, 2024 | $15.08 | $10.90 | -27.72% |
| Jun 06, 2024 | $26.81 | $23.22 | -13.39% |
| Apr 10, 2024 | $7.40 | $19.38 | +161.89% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Rent the Runway (RENT) report earnings?
Rent the Runway (RENT) is schdueled to report earning on Apr 15, 2025, TBA Not Confirmed.
What is Rent the Runway (RENT) earnings time?
Rent the Runway (RENT) earnings time is at Apr 15, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is RENT EPS forecast?
RENT EPS forecast for the fiscal quarter 2024 (Q4) is -2.25.
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