Rent the Runway has regained growth momentum after achieving profitability milestones, reporting a slight increase in active subscribers despite a revenue drop. The company plans to double inventory by 2025, addressing user frustrations about stock availability. Inventory orders increased by 24% in Q1 2025, with plans for a total increase of 134%. Engagement metrics have improved, with subscriber retention at a four-year high. CEO Jennifer Hyman emphasized that the rental model is now mainstream and it's time to invest in growth strategies again, following last year's validation of business fundamentals.
"Last year, we proved the business model and the unit economics of the model work. The industry of rental is now mainstream... we're playing offense."
"Customer response has been encouraging based on improved engagement... subscriber retention is at a four-year high... products have seen a 23 percent rise in share of views..."
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