-3.92%
-4.94%
-11.98%
-45.77%
-34.20%
-93.00%
-97.91%
AI Spotlight on RENT
Company Description
Rent the Runway, Inc.rents designer wear for women through its stores and online retail.The company offers ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, ski wear, home goods, evening wear, and kids wear, as well as accessories.
It also engages in the software development and support activities.The company was incorporated in 2009 and is headquartered in Brooklyn, New York.
Market Data
| Last Price | 8.08 |
| Change Percentage | -3.92% |
| Open | 8.23 |
| Previous Close | 8.41 |
| Market Cap ( Millions) | 30 |
| Volume | 31607 |
| Year High | 41.81 |
| Year Low | 4.46 |
| M A 50 | 9.24 |
| M A 200 | 13.43 |
Financial Ratios
| FCF Yield | -74.39% |
| Dividend Yield | 0.00% |
| ROE | 55.18% |
| Debt / Equity | -27.04% |
| Net Debt / EBIDTA | -85.54% |
| Price To Book | -0.18 |
| Price Earnings Ratio | -0.38 |
| Price To FCF | -1.34 |
| Price To sales | 0.1 |
| EV / EBITDA | 0.07 |
News
- Jan -15 - Bet on 5 Top-Ranked Stocks With Rising P/E for Soild Gains
- Jan -10 - Bet on 5 Top-Ranked Stocks With Rising P/E to Boost Your Portfolio
- Dec -09 - Rent the Runway, Inc. (RENT) Q3 2024 Earnings Call Transcript
- Dec -09 - Rent the Runway, Inc. (RENT) Reports Q3 Loss, Tops Revenue Estimates
- Dec -09 - Rent the Runway, Inc. Announces Third Quarter 2024 Results
- Dec -09 - North American Morning Briefing : Global Ad Shares -2-
- Nov -18 - Rent the Runway to Report Third Quarter 2024 Results on December 9, 2024
- Oct -23 - Rent the Runway (RENT) Upgraded to Strong Buy: Here's What You Should Know
- Oct -23 - New Strong Buy Stocks for October 23rd
- Oct -07 - Analysts See 180% Upside for Rent the Runway: Should You Buy?
- Oct -04 - 3 High-Risk, High-Reward Micro-Cap Stocks You Shouldn't Ignore
- Oct -02 - Analysts See 180% Upside for Rent the Runway: Should You Buy?
- Sep -10 - All You Need to Know About Rent the Runway (RENT) Rating Upgrade to Buy
- Sep -06 - Rent the Runway, Inc. (RENT) Q2 2024 Earnings Call Transcript
- Sep -05 - Rent the Runway, Inc. (RENT) Reports Q2 Loss, Tops Revenue Estimates
- Sep -05 - Rent the Runway, Inc. Announces Second Quarter 2024 Results
- Aug -16 - Rent the Runway to Report Second Quarter 2024 Results on September 5, 2024
- Jun -19 - Rent the Runway to Participate in Upcoming Investor Conferences
- Jun -19 - 7 Penny Stocks That Aren't as Ludicrous as They Seem
- Jun -12 - Rent the Runway Stock: The Recession-Proof Fashion Play for Bold Investors
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Subscription and Reserve Rental
Expected Growth : 5 %
What the company do ?
Rent the Runway's Subscription and Reserve Rental allow customers to rent designer clothing and accessories for a monthly fee or one-time rental, respectively, offering flexible and affordable luxury fashion access.
Why we expect these perspectives ?
Rent the Runway's 5% growth in Subscription and Reserve Rental is driven by increasing demand for sustainable fashion, expansion into new markets, and enhanced customer experience through personalized styling and flexible rental options. Additionally, the rise of experiential spending and growing awareness of the environmental impact of fast fashion contribute to the segment's growth.
Segment n°2 -> Other
Expected Growth : 5 %
What the company do ?
Other from Rent the Runway, Inc. refers to revenue generated from miscellaneous sources, including subscription fees, insurance, and other services.
Why we expect these perspectives ?
Rent the Runway's 5% growth is driven by increasing adoption of subscription services, expansion into new markets, and strategic partnerships. The company's focus on sustainability and convenience resonates with environmentally-conscious and fashion-forward consumers. Additionally, investments in technology and logistics have improved operational efficiency, enabling the company to scale effectively.
Rent The Runway, Inc. Products
| Product Range | What is it ? |
|---|---|
| Unlimited | A monthly subscription service that allows customers to rent up to 4 items at a time, with unlimited exchanges and no late fees. |
| Update | A 4-day rental service that allows customers to rent up to 4 items at a time, with the option to purchase at a discounted price. |
| Reserve | A service that allows customers to reserve a specific item for a specific date, ensuring availability for their event or occasion. |
| RTR Update Membership | A monthly membership that includes 4 rentals per month, with the option to add additional rentals or purchase items at a discounted price. |
Rent the Runway, Inc.'s Porter Forces
Threat Of Substitutes
Rent the Runway's subscription-based model and wide range of designer brands make it difficult for customers to find substitutes, reducing the threat of substitutes.
Bargaining Power Of Customers
While customers have some bargaining power due to the availability of alternative fashion rental services, Rent the Runway's strong brand reputation and wide range of designer brands mitigate this power.
Bargaining Power Of Suppliers
Rent the Runway's strong relationships with designer brands and its ability to negotiate favorable terms reduce the bargaining power of suppliers.
Threat Of New Entrants
While there are some barriers to entry, such as building relationships with designer brands and creating a strong logistics network, new entrants could still pose a threat to Rent the Runway's market share.
Intensity Of Rivalry
The fashion rental market is highly competitive, with several players vying for market share, leading to a high intensity of rivalry.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 152.20% |
| Debt Cost | 3.95% |
| Equity Weight | -52.20% |
| Equity Cost | 6.46% |
| WACC | 2.63% |
| Leverage | -291.58% |
Rent the Runway, Inc. : Quality Control
Rent the Runway, Inc. passed 4 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| ZUMZ | Zumiez Inc., together with its subsidiaries, operates as a specialty retailer of apparel, footwear, accessories, and hardgoods for young men and women. Its hardgoods include skateboards, snowboards, bindings, components, and … |
| VSCO | Victoria's Secret & Co. operates as a specialty retailer of women's intimate, personal care, and beauty products worldwide. The company offers bras, panties, lingerie, sleepwear, loungewear, and athletic attire and … |
| PLCE | The Children's Place, Inc. operates as a children's specialty apparel retailer. The company operates in two segments, The Children's Place U.S. and The Children's Place International. It sells apparel, footwear, … |
| BIRD | Allbirds, Inc. manufactures and sells footwear and apparel products for men and women. It offers shoes, such as running shoes, everyday sneakers, high-tops, slip-ons, boat shoes, flats, weather repellent shoes, … |
| DLTH | Duluth Holdings Inc. sells casual wear, workwear, and accessories for men and women under the Duluth Trading brand in the United States. It provides shirts, pants, underwear, outerwear, footwear, accessories, … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
🥇
Allbirds
A-Score
1-Year Total Return ->
🥈
Zumiez
A-Score
1-Year Total Return ->
🥉
Duluth Holdings
A-Score
1-Year Total Return ->
4
Victoria's Secret
A-Score
1-Year Total Return ->
5
The Children's Place
A-Score
1-Year Total Return ->
6
