Rent the Runway (NASDAQ: RENT), shares fell over 5% during after-hours trading on Wednesday after reporting its fourth quarter results. Nevertheless, the company believes that the more than 2 million planned weddings for this year will be a boost for the business.
The e-commerce platform reported an earnings loss of USD0.62 a share, compared to the expected loss of USD0.64 a share. Meanwhile, revenue amounted to UD64.1 Million, higher than analysts anticipated USD63.29 Million.
“I’m proud that the strategic initiatives we focused on in 2021 paid off. We improved the overall financial profile of Rent the Runway, making progress across all key financial metrics and demonstrating the resilience of the business during a year that was anything but normal,” said Jennifer Hyman, CEO and Co-Founder of Rent the Runway. “Looking ahead, our strong Q1 2022 subscriber guidance and fiscal year 2022 revenue guidance reflect our ongoing confidence in the business as we continue to grow significantly with an eye towards profitability. We look forward to capitalizing on one of the strongest potential macro environments for rental we’ve seen in recent years, with an outsized pipeline of weddings and social occasions in 2022, return to work and a resurgence of general social activity.”
The company now projects this year’s revenue to range anywhere from USD295 Million and USD305 Million. Analysts had forecasted revenue to be USD305 Million.
“Profitability is our number one goal,” Hyman said. “And it’s my number one priority as the CEO.”