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In its filing with the U.S. Securities and Exchange Commission, the Brooklyn, New York-based company disclosed a near 39% drop in revenue for the fiscal year 2020.
Rent the Runway, which was founded in 2009, lets users rent clothes and shop second-hand merchandise from over 750 designer brands. It had confidentially filed for a listing in July.
The company reported 2020 revenue of $157.5 million, down from $256.9 million a year earlier. Its net loss widened to $171.1 million in the same period, from $153.9 million a year earlier.
The company’s top-line also took a hit in the first half of this fiscal year, with revenue down 9% for the six months ended July 31.
Rent the Runway raised funds last year at a valuation of $750 million, below its previous valuation of $1 billion, Bloomberg News reported in June. (https://bloom.bg/3mt348h)
Demand for second-hand clothes has jumped in recent months as customers become increasingly conscious about their carbon footprint, boosting revenues at subscription-based styling service Stitch Fix (NASDAQ:SFIX) and online resale shop ThredUp.
Positive investor sentiment and fertile market conditions for new listings also helped other retailers like eyewear company Warby Parker and Roger Federer-backed shoemaker On Holding AG ace their market debuts last month.
Goldman Sachs & Co (NYSE:GS), Morgan Stanley (NYSE:MS) and Barclays (LON:BARC) are the lead underwriters for the offering. Rent the Runway will list its stock on Nasdaq under the symbol “RENT”.