Hire the Runway inventory falls after posting Q3 web loss

NEW YORK – Hire the Runway Inc. (NASDAQ:RENT) shares had been down 2.4% in Monday after posting third-quarter outcomes.

The style rental firm posted income of $75.9 million for the quarter ended October 31, up 4.7% year-over-year. Adjusted EBITDA got here in at $9.3 million, in comparison with $3.5 million in the identical quarter final 12 months.

Hire the Runway reported a web lack of $18.9 million, or $4.94 per share, narrowing from a lack of $31.5 million, or $9.09 per share, within the year-ago quarter.

The corporate ended the quarter with 132,518 energetic subscribers, up 1% year-over-year. Nevertheless, common energetic subscribers declined 3% to 130,796.

“Hire the Runway’s underlying enterprise traits have continued to enhance in Q3 2024,” stated CFO Sid Thacker. “Income development improved for the fourth consecutive quarter and ending Lively Subscribers returned to 12 months over 12 months development.”

For the fourth quarter, Hire the Runway expects income between $74.4 million and $80.3 million. The corporate reiterated its expectation to succeed in free money stream breakeven for fiscal 12 months 2024.

CEO Jennifer Hyman stated the corporate is “laser targeted on reaching free money stream breakeven” and has pushed development in its Reserve and Resale choices whereas lowering buyer acquisition prices.

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