Rent the Runway revenues increase, targets new subscriber growth

The number of active subscribers also increased, reaching 128,586, which represents a 38% increase from 2021. However, CEO and co-founder Jennifer Hyman believes this number is unsatisfactory, attributing the slower growth to price increases during the second quarter.

To achieve their target of a 25% increase in active subscribers, Rent the Runway is focusing on improving the customer experience and innovating its services.

One of the key strategies for growth involves shifting from a capital-heavy wholesale model to new models where Rent the Runway shares revenue with brand partners each time an item is worn. Currently, 60% of the company’s inventory is acquired through this method.

Additionally, Rent the Runway plans to invest between $69 and $72 million in rental products and focus on inventory freshness. To enhance the user experience, the company is working on increasing site speed and creating personalized onboarding processes…