2023-03-30 10:44:39 ET
Rent the Runway ( NASDAQ: RENT ) shot up on Thursday after investors warmed back up to the online fashion reseller.
In a recent investor presentation, the New York City-based company said it believes that is has just scratched the surface of the market opportunity with 56% of women indicating in a survey that they will subscribe to fashion at some point over the next five years. Rent the Runway ( RENT ) estimated the total addressable market for rental subscription among U.S. women is at 44M.
Rent the Runway ( RENT ) also said the it thinks offering additional items per subscription shipment will be good for customers and for the bottom line. Adding an extra item per subscription shipment is seen having a minimal impact on gross margins, and RENT expects to continue improving adjusted EBITDA and free cash flow margins. The new monthly pricing is $94 for 5 items per month, $144 for 10 items per month, and $235 for 20 items per month.
Shares of Rent the Runway ( RENT ) broke 13.11% higher in Thursday morning trading after seeing a steady decline since early February.
Seeking Alpha contributor Mohammed Saqib turned bullish on Rent the Runway ( RENT ) about a month ago. He noted RENT has invested heavily in developing proprietary systems and infrastructure, which he thinks give it a competitive edge and sets it apart from peers. RENT was also noted to be expanding into new categories and use cases, such as home decor and pet apparel. Read the full breakdown on RENT.
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Rent the Runway rallies as the online retailer points to large addressable market