Rent the Runway Predicts Full-Year Revenue to be Lower than Expected; Shares Decline 4%

The bearish forecast comes as fashion stores are projected to profit from a post-COVID resurgence in demand for dress and formal wear, as the United States prepares for the highest number of ceremonies since 1984, as the epidemic disrupted weddings and other social occasions.

According to IBES statistics from Refinitiv, Rent the Runway forecasts full-year sales of between $295 million and $305 million, down from previous projections of $305.02 million.

Revenue increased 91% to $64.1 million in the fourth quarter, above analyst projections of $63.22 million.

The company's active subscribers for its fashion rental business increased by more than 110% to 115,240 in the third quarter.

The stock is down more than 70% from its October initial public offering price after Wednesday's after-hours fall.