: Rent the Runway full-year sales forecast comes up short, announces new CFO
Online fashion marketplace Rent the Runway Inc. RENT on Wednesday reported better-than-expected quarterly results and said it expected a jump in subscriber growth, but it forecast full-year sales that were below expectations. The company also said that Scarlett O’Sullivan would transition out of the CFO role on May 25 and that Sid Thacker, the company’s senior vice president of finance, would replace her on that date. Shares fell 7% in after-hours trade. Executives said they expected more than 25% growth in active subscribers by the end of 2023, as well as a nearly 50% reduction in cash consumption over that time. They also said they expected full-year sales of $320 million to $330 million, but that was below FactSet estimates for $346 million. For the fourth quarter, Rent the Runway’s sales came in at $75.4 million, up 18% from $64.1 million in the fourth quarter of its fiscal 2021. The company reported a net loss of $26.2 million, or 40 cents a share, compared with $39.3 million, or 62 cents a share, in the prior-year quarter. Analysts polled by FactSet expected a loss of 51 cents a share and revenue of $73.5 million.
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