Option chain shows key data for Rent the Runway's stock options at various strike prices and expiration dates. Traders use this information to analyze potential trades and assess market sentiment for Rent the Runway.

Rent the Runway (NASDAQ:RENT) Stock, Option Chain

Rent the Runway

Rent the Runway Inc is an e-commerce platform that allows users to rent, subscribe, or buy designer apparel and accessories. It gives customers access to its unlimited closet through its subscription offering (Subscription) or the ability to rent a-la-carte through its reserve offering (Reserve). The company also gives its subscribers and customers the ability to buy its products through its Resale offering. Its Closet in the Cloud offers a wide assortment of items for every occasion, from evening wear and accessories to ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear and ski wear.

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Micro-cap stocks are typically categorized as companies with market capitalizations between $50 million and $300 million. However, it&#39;s not a hard-and-fast rule. Many small stocks can fluctuate massively in price over a short time. This can put their value inside or outside that range on a given day.

3 High-Risk, High-Reward Micro-Cap Stocks You Shouldn&#39;t Ignore

Mid Cap

Price Target

Offerings

Retail Sales

Analyst Ratings

URBN

Rent the Runway (NASDAQ: RENT) is a micro-cap stock whose price target was recently updated by Jefferies. This signals that the name could have nearly triple-bagger upside. According to MT Newswires, analysts at Jefferies updated their price target for the firm on Sept. 6.

Analysts See 180% Upside for Rent the Runway: Should You Buy?

Rent the Runway, Inc. - Class A Common Stock

Rent the Runway Inc

RENTOKIL INITIAL 2005 ORD by Rentokil Initial Plc

Rentokil Initial PLC

Rentokil Initial plc American Depositary Shares (each representing five (5) Ordinary Shares)

JMP Securities analyst Andrew Boone reiterates Rent the Runway (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RENT#NASDAQ">RENT</a>) with a Market Outperform and maintains $40 price target.

Reiteration

JMP Securities Reiterates Market Outperform on Rent the Runway, Maintains $40 Price Target

WIIM

Rent The Runway shares are trading lower after the company reported worse-than-expected Q3 sales results.

Rent the Runway Shares Resume Trade

Outlook
For the fiscal fourth quarter of 2024, Rent the Runway expects:
<ul>
<li>Revenue of between $74.4 million and $80.3 million</li>
<li>Adjusted EBITDA of between $16.1 million and $20.1 million</li>
</ul>
For fiscal year 2024, Rent the Runway expects:
<ul>
<li>Revenue growth of between 2% to 4% versus fiscal year 2023</li>
<li>Adjusted EBITDA Margin of 15% to 16%</li>
<li>Free Cash Flow Breakeven on a full year basis</li>
</ul>

Earnings

Guidance

Rent the Runway Q4 Outlook: Expects Revenue Of $74.4M-$80.3M Vs. $78.20M Est.; For FY24 Expects Revenue Growth Of 2%-4% YoY

Rent the Runway (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RENT#NASDAQ">RENT</a>) reported quarterly losses of $(4.94) per share which beat the analyst consensus estimate of $(4.99) by 1 percent. This is a 45.65 percent increase over losses of $(9.09) per share from the same period last year. The company reported quarterly sales of $75.900 million which missed the analyst consensus estimate of $76.050 million by 0.20 percent. This is a 4.69 percent increase over sales of $72.500 million the same period last year.

Earnings Beats

Earnings Misses

Rent the Runway Q3 2024 GAAP EPS $(4.94) Beats $(4.99) Estimate, Sales $75.900M Miss $76.050M Estimate

Shares of The Interpublic Group of Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IPG#NYSE">IPG</a>) rose sharply in <a href="https://www.benzinga.com/quote/IPG">today's pre-market</a>.
The Wall Street Journal reported Sunday that Omnicom (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OMC#NYSE">OMC</a>) is in advanced talks to merge with Interpublic.
Interpublic shares jumped 13.8% to $33.32 in the pre-market trading session.
Here are some other stocks moving in pre-market trading.
<h3 class="wp-block-heading">Gainers</h3>
<ul>
<li>Zeo Energy Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZEO#NASDAQ">ZEO</a>) gained 106.6% to $2.79 in pre-market trading.</li>
<li>MEDIROM Healthcare Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRM#NASDAQ">MRM</a>) rose 74.1% to $4.98 in pre-market trading. M3 Group joined MEDIROM Mother Labs&#8217; Series A financing round at JPY9 billion (as of Dec. 1, approximately USD $59,000,000) pre-money valuation.</li>
<li>China SXT Pharmaceuticals, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SXTC#NASDAQ">SXTC</a>) gained 73.4% to $0.6490 in pre-market trading.</li>
<li>Gaxos.ai Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GXAI#NASDAQ">GXAI</a>) gained 58.1% to $4.11 in pre-market trading. Gaxos.ai shares jumped 83% on Friday ater the company announced the release of its visual editor for AI solutions for game developers and publishers..</li>
<li>Fangdd Network Group Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DUO#NASDAQ">DUO</a>) gained 51.4% to $0.8753 in pre-market trading after rising over 5% on Friday.</li>
<li>Algorhythm Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIME#NASDAQ">RIME</a>) rose 27.2% to $0.1170 in pre-market trading. Algorhythm Holdings announced the closing of $9.5 million public offering.</li>
<li>Satellogic Inc.  (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SATL#NASDAQ">SATL</a>) gained 25% to $4.90 in pre-market trading after jumping 25% on Friday.</li>
<li>ESSA Bancorp, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESSA#NASDAQ">ESSA</a>) climbed 17.7% to $24.00 in pre-market trading.</li>
<li>Rent the Runway, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RENT#NASDAQ">RENT</a>) gained 17% to $15.00 in pre-market trading after jumping 14% on Friday.</li>
</ul>
<h3 class="wp-block-heading">Losers</h3>
<ul>
<li>BioAge Labs, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIOA#NASDAQ">BIOA</a>) shares tumbled 68.6% to $6.30 in pre-market trading after the company announced discontinuation of STRIDES Phase 2 clinical trial evaluating Azelaprag in combination with Tirzepatide for the treatment of obesity.</li>
<li>Golden Minerals Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AUMN#NYSE">AUMN</a>) declined 25.7% to $0.2000 in pre-market trading. Golden Minerals announced NYSE American notice to commence delisting.</li>
<li>Healthcare Triangle, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HCTI#NASDAQ">HCTI</a>) shares fell 19.4% to $0.95 in pre-market trading after jumping over 70% on Friday.</li>
<li>The Lion Electric Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEV#NYSE">LEV</a>) fell 14.5% to $0.3079 in pre-market trading after gaining around 8% on Friday.</li>
<li>Oriental Rise Holdings Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ORIS#NASDAQ">ORIS</a>) fell 13.4% to $3.14 in pre-market trading after dipping 94% on Friday.</li>
<li>Zhibao Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZBAO#NASDAQ">ZBAO</a>) shares fell 12.4% to $2.44 in pre-market trading after gaining 16% on Friday.</li>
<li>SuperCom Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPCB#NASDAQ">SPCB</a>) dipped 12.4% to $2.89 in pre-market trading after jumping 5% on Friday.</li>
<li>Sharplink Gaming Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBET#NASDAQ">SBET</a>) fell 12.2% to $0.82 in pre-market trading after jumping 79% on Friday.</li>
<li>Avalon Globocare Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ALBT#NASDAQ">ALBT</a>) shares dipped 12.1% to $3.62 in pre-market trading after jumping 55% on Friday.</li>
<li>Color Star Technology Co Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADD#NASDAQ">ADD</a>) fell 11.1% to $3.03 in today's pre-market trading after dipping 12% on Friday.</li>
</ul>
Now Read This: 
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<h3>Companies Reporting Before The Bell</h3>
• Rent the Runway (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RENT#NASDAQ">RENT</a>) is likely to report quarterly loss at $4.45 per share on revenue of $76.05 million. 
• VersaBank (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VBNK#NASDAQ">VBNK</a>) is projected to report quarterly earnings at $0.41 per share on revenue of $29.20 million. 
• Hello Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MOMO#NASDAQ">MOMO</a>) is estimated to report quarterly earnings at $0.27 per share on revenue of $366.41 million. 
<h3>Companies Reporting After The Bell</h3>
• Casey's General Stores (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CASY#NASDAQ">CASY</a>) is projected to report quarterly earnings at $4.27 per share on revenue of $4.02 billion. 
• Toll Brothers (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOL#NYSE">TOL</a>) is estimated to report quarterly earnings at $4.34 per share on revenue of $3.17 billion. 
• MongoDB (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MDB#NASDAQ">MDB</a>) is likely to report quarterly earnings at $0.69 per share on revenue of $495.72 million. 
• Vail Resorts (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTN#NYSE">MTN</a>) is likely to report quarterly loss at $4.98 per share on revenue of $251.62 million. 
• Genasys (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GNSS#NASDAQ">GNSS</a>) is projected to report quarterly loss at $0.11 per share on revenue of $9.03 million. 
• Phreesia (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PHR#NYSE">PHR</a>) is projected to report quarterly loss at $0.29 per share on revenue of $106.00 million. 
• HealthEquity (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HQY#NASDAQ">HQY</a>) is expected to report quarterly earnings at $0.72 per share on revenue of $290.00 million. 
• Amtech Systems (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASYS#NASDAQ">ASYS</a>) is projected to report quarterly earnings at $0.01 per share on revenue of $23.75 million. 
• Oracle (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) is likely to report quarterly earnings at $1.48 per share on revenue of $14.11 billion. 
• Braze (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BRZE#NASDAQ">BRZE</a>) is projected to report quarterly loss at $0.01 per share on revenue of $148.19 million. 
• Yext (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/YEXT#NYSE">YEXT</a>) is projected to report quarterly earnings at $0.12 per share on revenue of $113.21 million. 
• C3.ai (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AI#NYSE">AI</a>) is expected to report quarterly loss at $0.16 per share on revenue of $91.02 million. 
• Planet Labs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PL#NYSE">PL</a>) is likely to report quarterly loss at $0.04 per share on revenue of $63.12 million. 
• Oil-Dri Corp of America (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ODC#NYSE">ODC</a>) is projected to report earnings for its first quarter. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

ASYS

BRZE

CASY

GNSS

MOMO

ORCL

VBNK

YEXT

Earnings Scheduled For December 9, 2024

Rent the Runway (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RENT#NASDAQ">RENT</a>) is set to give its latest quarterly earnings report on Monday, 2024-12-09. Here's what investors need to know before the announcement.
Analysts estimate that Rent the Runway will report an earnings per share (EPS) of $-4.98. 
Rent the Runway bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
<h3>Historical Earnings Performance</h3>
The company's EPS beat by $1.30 in the last quarter, leading to a 27.72% drop in the share price on the following day.
Here's a look at Rent the Runway's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q2 2024</th>
<th>Q1 2024</th>
<th>Q4 2023</th>
<th>Q3 2023</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>-5.47</td>
<td>-7.43</td>
<td>-6.53</td>
<td>-8.6</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>-4.17</td>
<td>-6.03</td>
<td>-7.02</td>
<td>-9</td>
</tr>
<tr>
<td>Price Change %</td>
<td>-28.000000000000004%</td>
<td>-13.0%</td>
<td>162.0%</td>
<td>-6.0%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2024/1733497292_0.png" alt="eps graph" />
<a href="https://www.benzinga.com/quote/RENT/earnings">To track all earnings releases for Rent the Runway visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Rent the Runway's Earnings Outlook

<h3>Gainers</h3>
<ul>
<li>Revolve Gr (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RVLV#NYSE">RVLV</a>) stock increased by 24.8% to $32.46 during Wednesday's regular session. The company's market cap stands at $2.2 billion. The company's, Q3 earnings came out yesterday. </li>
<li>MasterCraft Boat Hldgs (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCFT#NASDAQ">MCFT</a>) stock rose 23.59% to $21.79. The company's market cap stands at $361.9 million. As per the news, the Q1 earnings report came out today. </li>
<li>Super Group (SGHC) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SGHC#NYSE">SGHC</a>) shares rose 16.34% to $4.88. The market value of their outstanding shares is at $2.4 billion. The company's, Q3 earnings came out today. </li>
</ul>
<h3>Losers</h3>
<ul>
<li>iRobot (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IRBT#NASDAQ">IRBT</a>) stock declined by 33.2% to $6.96 during Wednesday's regular session. The company's market cap stands at $200.0 million. As per the press release, Q3 earnings came out today. </li>
<li>ODP (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ODP#NASDAQ">ODP</a>) stock declined by 15.21% to $26.38. The market value of their outstanding shares is at $885.8 million. As per the press release, Q3 earnings came out today. </li>
<li>Wayfair (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/W#NYSE">W</a>) stock decreased by 14.31% to $37.99. The company's market cap stands at $4.6 billion. As per the news, the Q3 earnings report came out 3 days ago. </li>
<li>Rent the Runway (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RENT#NASDAQ">RENT</a>) shares decreased by 13.54% to $9.58. The company's market cap stands at $35.6 million. </li>
<li>Cricut (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRCT#NASDAQ">CRCT</a>) stock declined by 13.17% to $5.71. The company's market cap stands at $1.2 billion. As per the news, the Q3 earnings report came out yesterday. </li>
<li>Jiade (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JDZG#NASDAQ">JDZG</a>) stock declined by 12.31% to $0.78. The company's market cap stands at $19.0 million. 
See Also: <a href="http://www.benzinga.com/money/best-consumer-cyclical-stocks/" title="www.benzinga.com/money/best-consumer-cyclical-stocks/">www.benzinga.com/money/best-consumer-cyclical-stocks/</a></li>
</ul>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

CRCT

IRBT

JDZG

MCFT

RVLV

SGHC

9 Consumer Discretionary Stocks Moving In Wednesday's Intraday Session

Micro-cap stocks are typically categorized as companies with market capitalizations between $50 million and $300 million. However, it&#39;s not a hard-and-fast rule. Many small stocks can fluctuate massively in price over a short time. This can put their value inside or outside that range on a given day.
Picking micro-cap stocks can yield massive returns but can also be extremely risky.&nbsp; For example, when NVIDIA&nbsp;went public in 1999, the company had a market capitalization of $279 million. Holding that investment from then to now would have generated a total return of over 300,000%. In other words, a $10,000 investment in 1999 would have turned into over $31 million.
However, micro-caps can also result in shareholders losing all of their investments. SunPower (OTC: <a class="ticker" href="https://www.benzinga.com/stock/spwrq#OTC">SPWRQ</a>) is a recent example of this. The company traded in the micro-cap range for several weeks before the NASDAQ delisted it on Aug. 16. It filed for Chapter 11 bankruptcy and is now worth nothing.
Below are three micro-cap stocks with significant potential and significant risk. They sit within or just outside the $50 million to $300 million market capitalization range.
<h2>Can Rent the Runway Get Back on Its Feet?</h2>
Rent the Runway (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rent#NASDAQ">RENT</a>) made a strong name for itself as one of the first entrants into the clothing rental space. The company allows customers to rent uber-expensive designer clothing, costing them much less than buying it outright.
It is improving its financial situation and expects to break even on cash flow this year. However, subscribers to its service are declining as competitors are seeing massive growth.
The rapid expansion in subscribers for competitor Nuuly shows that there is growth to be had in this market. Rent the Runway&#39;s valuation is extremely low, but reinvigorating growth is essential to its long-term success. In August, the company saw a 20% increase in orders in its &quot;reserve&quot; segment, which helped create a flywheel effect to attract more monthly subscribers.
Additionally, the company says the improvements in its website have &quot;almost doubled checkout completion rate compared to the first half of the year.&quot; This means customers are buying products more often rather than leaving them in their cart. Lastly, the company hired a new Chief Marketing Officer in March to reignite customer interest.
<h2>374Water&#39;s Hopes Lie in Central Florida</h2>
374Water (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/scwo#NASDAQ">SCWO</a>) is a wastewater treatment company that is developing a new technology for this industry. It is currently at a crossroads as it tests its products with the City of Orlando.
If the tests are successful, the city said it intends to purchase multiple units from the company.
These purchases would mark the&nbsp;company&#39;s first significant revenue. The firm announced just last week that its&nbsp;systems are up and running in Orlando and should provide&nbsp;periodic updates about the project. The company will also use its Orlando operation to demonstrate the tech to potential federal and industrial customers. So, it may be able to parlay this into many more customers than just the city.
These updates will be key tests of the technology. They should greatly affect 374Water&#39;s chances of long-term commercial success.
<h2>Skye Bioscience: A Weight Loss Drug Boom or Bust?</h2>
Last on the list is Skye Bioscience (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/skye#NASDAQ">SKYE</a>). Skye is a clinical-stage pharmaceutical company that is developing a different type of weight loss drug. Recently, GLP-1 agonist drugs have seen massive commercial success. Skye&#39;s drug, nimacimab, is a CB1 inhibitor. It is intended to have similar weight loss effects as GLP-1 drugs like Ozempic and Zepbound but works through a different mechanism.
The hope is that the successful development of a CB1 drug could open up a new market of customers who respond better to its mechanism of action compared to GLP-1s. CB1s could also possibly be used together with GLP-1s to compound their effects. However, CB1s have a history of inducing negative psychological effects. Novo Nordisk&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nvo#NYSE">NVO</a>) CB1 inhibitor was shown to have those same problems in recently released results, which caused the company&#39;s shares to fall 5% in one day. However, the drug did show adequate weight-loss effects.
Skye released a statement about Novo&#39;s results, stating that the weight loss results validate Skye&#39;s drug. At the same time, Skye laid out a case for why its drug could mitigate the negative psychological effects. Skye could have a blockbuster drug if nimacimab gets through all Food and Drug Administration trials. But it still has a long way to go, having entered Phase 2 trials in August.
The article &quot;<a href="https://www.marketbeat.com/stock-ideas/3-high-risk-high-reward-micro-cap-stocks-you-shouldnt-ignore/">3 High-Risk, High-Reward Micro-Cap Stocks You Shouldn&#39;t Ignore</a>&quot; first appeared on MarketBeat.

3 High-Risk, High-Reward Micro-Cap Stocks You Shouldn't Ignore

Rent the Runway (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rent#NASDAQ">RENT</a>) is a micro-cap stock whose price target was recently updated by Jefferies. This signals that the name could have nearly triple-bagger upside. According to MT Newswires, analysts at Jefferies updated their price target for the firm on Sept. 6. That target now sits at $26 per share, while the company trades at $9.31 per share. This implies that the analyst believes shares could rise 180% from their current level.
To understand this lofty target, I&#39;ll examine the&nbsp;consumer discretionary firm&#39;s operations, competitors, and financial situation.
<h2>Rent the Runway Aims to Offer Customers an &quot;Unlimited Closet&quot;</h2>
Rent the Runway (RTR) is a fashion company with a unique business model. The company is a platform where customers can rent pieces of clothing. It specifically caters to women, allowing them to rent high-priced designer garments. This allows its customers to access these garments for a much lower price than having to buy them.
This opens up the world of designer clothing to many more people, allowing many users to split the cost of those garments. RTR points out that its average customer wears clothes worth 25 times more than what they pay in subscription fees for the service annually. The company aims to provide its customers with an &quot;unlimited closet&quot; as they can swap out their garments for other ones whenever they like. It generates revenue mostly through subscriptions to this service, which cost between $94 and $235 per month.
<h2>RTR: Improving Profitability Big Time, But a Massive Competitor Is Stealing Growth</h2>
Looking at the financials of Rent the Runway, it is a mixed bag. On the positive side, the company is becoming more profitable. The company has increased its gross margin by nearly 600 basis points since fiscal year 2021. Last quarter, its adjusted EBITDA margin was over 17%. That&#39;s a 700+ basis point increase from last year.
Additionally, its free cash flow has increased massively. The number through the first six months of 2024 sits at -$6 million, compared to -$30 million in the same 2023 period. The company says it expects to break even on cash flow in 2024.
Looking at cash flow is particularly important for a firm like RTR over net income, as product depreciation expense equals 21% of its revenue. Depreciation is a non-cash expense; it is an accounting expense. So, this isn&#39;t cash that the company is spending. The company deducts it from its net income but not its cash flow.
The ultimate goal of a business is to generate positive cash rather than a positive accounting profit, i.e., net income. A company&#39;s cash flow paints a better picture of its financial situation.
However, a big problem for RTR is the fact that its active subscribers are declining. The figure fell 3% year over year last quarter. Meanwhile, competitors like Nuuly saw active subscribers grow by 55% last quarter. Nuuly&#39;s average active subscribers now sit at over 250,000, nearly double that of RTR. This is despite the fact that the company has only been active for around five years versus 15 years for RTR.
This difference signals growth in this industry, but it&#39;s not going to RTR. This means that RTR&#39;s offerings are likely viewed as inferior to Nuuly&#39;s and do not give customers the items they want.
Nuuly, owned by the massive firm Urban Outfitters (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/urbn#NASDAQ">URBN</a>), enjoys a big advantage in acquiring a variety of clothing to offer customers. This is very difficult for the small RTR to compete with. This difference in being able to offer a wider variety of options is a likely source of Nuuly&#39;s superior growth. Nuuly also has a lower price point, offering more casual clothing that can appeal to a wider audience.
<h2>RTR&#39;s Rock-Bottom Valuation Sparks Wall Street Interest</h2>
Despite its issues, it&#39;s hard to dismiss RTR&#39;s extremely low valuation. It is trading at nearly one-tenth of its projected sales over the next twelve months. This is assuredly a big reason why some Wall Street analysts place such large price targets on the firm.
Its increasing profitability is great to see, but it likely needs to see growth reaccelerate before the market will give it any credit. If it can&#39;t, this indicates that RTR&#39;s offerings to customers have fundamental issues, and the company can&#39;t expect to succeed long term. Still, its valuation makes it an interesting name to watch if it can find a way to start growing again.
The article &quot;<a href="https://www.marketbeat.com/stock-ideas/analysts-see-180-upside-for-rent-the-runway-should-you-buy/">Analysts See 180% Upside for Rent the Runway: Should You Buy?</a>&quot; first appeared on MarketBeat.

Jefferies analyst Ashley Helgans maintains Rent the Runway (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RENT#NASDAQ">RENT</a>) with a Buy and lowers the price target from $34 to $26.

Jefferies Maintains Buy on Rent the Runway, Lowers Price Target to $26

Rent The Runway shares are trading lower. The stock may be moving on continued weakness following the company's Q2 financial results yesterday.

Outlook
For the fiscal third quarter of 2024, Rent the Runway expects:
<ul>
<li>Revenue of between $75 million and $77 million</li>
<li>Adjusted EBITDA Margin of 13% to 15%</li>
</ul>
For fiscal year 2024, Rent the Runway expects:
<ul>
<li>Revenue growth of between 2% to 6% versus fiscal year 2023, an increase versus prior expectations based on stronger business momentum</li>
<li>Adjusted EBITDA Margin of 15% to 16%</li>
<li>Free Cash Flow Breakeven on a full year basis</li>
</ul>
Please see our second quarter 2024 earnings presentation at <a href="https://investors.renttherunway.com/">https://investors.renttherunway.com/</a> under the "Presentations" section for supplemental guidance.

Rent the Runway Sees Q3 Revenue $75M-$77M Vs $75.57M Est.; FY24 Revenue Growth Of 2%-6% YoY, An Increase Versus Prior Expectations Based On Stronger Business Momentum

Rent the Runway (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RENT#NASDAQ">RENT</a>) reported quarterly losses of $(4.17) per share which beat the analyst consensus estimate of $(5.47) by 23.77 percent. This is a 47.41 percent increase over losses of $(7.93) per share from the same period last year. The company reported quarterly sales of $78.90 million which beat the analyst consensus estimate of $77.20 million by 2.20 percent. This is a 4.23 percent increase over sales of $75.70 million the same period last year.

Rent the Runway Q2 EPS $(4.17) Beats $(5.47) Estimate, Sales $78.90M Beat $77.20M Estimate

Rent the Runway shares are trading following Q2 financial results.

<h3>Gainers</h3>
<ul>
<li>Singing Machine Co (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MICS#NASDAQ">MICS</a>) shares moved upwards by 27.0% to $0.75 during Monday's regular session. The market value of their outstanding shares is at $7.3 million. </li>
<li>Leslies (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LESL#NASDAQ">LESL</a>) stock moved upwards by 20.39% to $3.01. The market value of their outstanding shares is at $556.5 million. </li>
<li>Polestar Automotive (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSNY#NASDAQ">PSNY</a>) stock rose 13.55% to $1.22. The market value of their outstanding shares is at $2.5 billion. </li>
<li>EZGO Technologies (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EZGO#NASDAQ">EZGO</a>) shares moved upwards by 13.28% to $1.45. The market value of their outstanding shares is at $3.7 million. </li>
<li>VOXX International (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VOXX#NASDAQ">VOXX</a>) shares increased by 12.83% to $5.5. The company's market cap stands at $123.5 million. </li>
<li>Rent the Runway (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RENT#NASDAQ">RENT</a>) shares increased by 9.98% to $13.44. The market value of their outstanding shares is at $50.0 million. </li>
</ul>
<h3>Losers</h3>
<ul>
<li>Sunlands Technology (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STG#NYSE">STG</a>) stock declined by 39.8% to $4.73 during Monday's regular session. The market value of their outstanding shares is at $64.8 million. </li>
<li>LightInTheBox Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LITB#NYSE">LITB</a>) shares declined by 20.59% to $0.52. The market value of their outstanding shares is at $57.3 million. </li>
<li>Four Seasons Education (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FEDU#NYSE">FEDU</a>) stock fell 19.9% to $17.61. The company's market cap stands at $37.2 million. </li>
<li>TH International (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/THCH#NASDAQ">THCH</a>) shares decreased by 11.04% to $0.6. The company's market cap stands at $94.8 million. The company's, Q2 earnings came out 2 days ago. </li>
<li>Mullen Automotive (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MULN#NASDAQ">MULN</a>) shares fell 9.71% to $0.22. The market value of their outstanding shares is at $14.6 million. </li>
<li>BARK (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BARK#NYSE">BARK</a>) stock declined by 9.02% to $1.67. The company's market cap stands at $288.9 million. 
See Also: <a href="http://www.benzinga.com/money/best-consumer-cyclical-stocks/" title="www.benzinga.com/money/best-consumer-cyclical-stocks/">www.benzinga.com/money/best-consumer-cyclical-stocks/</a></li>
</ul>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

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12 Consumer Discretionary Stocks Moving In Monday's Intraday Session

<h4>Key Takeaways:</h4>
<ul>
<li>ATRenew posted strong revenue growth in the second quarter and predicted similar trends in the third, as it banks on rising demand from value-conscious consumers</li>
<li>The recycling specialist is placing greater emphasis on its higher-margin businesses, which it is pursuing partly through growing ties with partners Apple and JD.com</li>
</ul>
&nbsp;&nbsp;
By Doug Young
The&nbsp;<a href="https://www.prnewswire.com/news-releases/atrenew-inc-reports-unaudited-second-quarter-2024-financial-results-302226212.html">latest financial report</a>&nbsp;from recycling specialist&nbsp;ATRenew Inc.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rere#NYSE">RERE</a>) shows continued progress on several fronts, including improving margins as it emphasizes more profitable businesses and tweaks a major partnership with global smartphone giant&nbsp;Apple&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>).
At the more macro level, the report&rsquo;s highlights include the company&rsquo;s significant deepening of ties with longtime e-commerce partner&nbsp;JD.com&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jd#NASDAQ">JD</a>) through a major new multiyear agreement. That pairing, along with the Apple tie-up launched last year, are rapidly emerging as key partnerships for ATRenew as China aggressively rolls out new policies to achieve its twin goals of boosting consumption and promoting the circular economy.
While other Chinese companies have reported slowing revenue growth as China&rsquo;s economy slows, ATRenew has bucked that trend by maintaining strong double-digit gains by syncing with government priorities and catering to increasingly value-conscious consumers. It forecast that growth would continue into the third quarter as more Chinese cities roll out new programs aimed at boosting consumption through increasingly popular trade-in programs.
&ldquo;We have witnessed a significant shift in consumer behavior with trade-ins becoming a more mainstream choice for consumers seeking to upgrade their electronic products,&rdquo; said ATRenew founder and Chairman Kerry Chen on the company&rsquo;s earnings call last week. &ldquo;Looking ahead to the second half of the year, we anticipate that national policies promoting consumer product trade-ins will provide greater certainty for the industry.&rdquo;
ATRenew reported its revenue grew 27.4% in the second quarter to 3.78 billion yuan ($530 million), slightly topping the high end of its previous guidance range. It predicted the figure would continue growing at a similar rate of between 22% and 25% in the third quarter, potentially topping the 4 billion yuan mark just a year after passing 3 billion yuan.
The big majority of the company&rsquo;s revenue, about 90%, comes from product sales, which grew 29% during the quarter year-on-year, with the rest coming from services.
The company has been honing its operations in the last two years to focus on the most profitable businesses of product refurbishment and directly selling to consumers. Both of those offer higher margins than simpler trading in smartphones, electronics and other products with middlemen buyers and agents. It announced that revenue from its direct-selling business more than doubled in the second quarter, rising 125% year-on-year to 960 million yuan, accounting for about a quarter of its total.
The company also posted strong gains for its two-year-old non-electronics recycling business, which includes such categories as designer bags, gold and even vintage liquors. Transaction value for that part of the business reached 900 million yuan in the second quarter, ahead of 600 million yuan in the previous quarter and up by nearly 400% year-on-year.
The company&rsquo;s non-GAAP operating margin improved by 0.7 percentage points to 2.5%, helping to lift its adjusted net profit to a record 80.5 million yuan from 36.4 million yuan year-on-year. It lost money on a net basis, though the loss narrowed to 10.7 million yuan from 64.8 million yuan a year earlier.
<h4>Growing JD ties</h4>
Despite the broadly upbeat report, ATRenew&rsquo;s shares fell 11.3% the day it announced its results, though they pared some of those losses in the following days. The bigger story is a broader rally for the company&rsquo;s shares, which are up about 35% so far this year, outpacing a far smaller 4% gain for the broader iShares MSCI China ETF.
The stock trades at valuations levels comparable with its global recycling peers, though most of those stocks look relatively undervalued. Its price-to-sales (P/S) ratio currently stands at 0.31, which trails the 0.49 for&nbsp;The RealReal&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/real#NASDAQ">REAL</a>) but leads the 0.14 for&nbsp;Rent the Runway&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rent#NASDAQ">RENT</a>). All those numbers are well behind the 2.79 P/S for used car trader&nbsp;Carvana&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cvna#NYSE">CVNA</a>), showing the kind of valuations the other companies could someday fetch.
Next, we&rsquo;ll turn to the new JD.com tie-up, and also look at some of the other developments mentioned earlier. ATRenew is a longtime partner of JD.com, and the latter is a major ATRenew stakeholder with 34% of its shares. ATRenew said the pair signed a new agreement in May running through the end of 2027 that will see them &ldquo;continue to cooperate in the second-hand business by integrating resources and leveraging their respective strengths.&rdquo;
That&rsquo;s quite significant, since JD.com is one of China&rsquo;s top online electronics sellers and has recently ramped up its drive to promote used electronics in sync with the government&rsquo;s latest priorities. As that happens, the value of ATRenew&rsquo;s products traded through JD.com&rsquo;s various platforms doubled in May from a year earlier, and also grew by a similar amount during the June 18 shopping festival, a major online event.
At the same time, ATRenew has been tweaking its other major partnership for iPhone recycling with Apple, which dates back to last year. The company said the partnership had the potential to add up to 1.5 billion yuan to its annual revenue, but it got off to a shaky start due to low margins. Over the past year, however, ATRenew has been tweaking the program and said it achieved the important milestone of a positive gross margin for the business in the second quarter.
More broadly, ATRenew said a growing number of Chinese cities are rolling out programs to encourage trade-ins of used electronics, following the central government&rsquo;s release of an action plan in March for such large-scale trade-ins of consumer goods. The southern metropolis of Shenzhen rolled out a program in July to encourage smartphone trade-ins, and Chen said other cities are now crafting their own phone-specific subsidies at the local level.
&ldquo;In the second half of the year, we expect more cities to introduce similar subsidies, further promoting the effective recycling of items, electronic products within the circular economy,&rdquo; he said.
As it continued to sharpen its focus on its most profitable business lines, and continued efforts to improve efficiency through more automation of its inspection processes and recycling at the city level, ATRenew&rsquo;s operating loss narrowed sharply 5.6 million yuan in the second quarter from 61 million yuan a year earlier. While the company operates profitably on a non-GAAP basis, it could soon also operate profitably on a GAAP basis as well if current trends continue, representing another symbolic milestone for its profitability metrics.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

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ATRenew Posts Market-Defying Growth As Partnerships With JD.com, Apple Advance

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Shares of companies within the broader consumer discretionary sector are trading higher following strong economic data that helps ease recession concerns.

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Shares of companies within the broader consumer discretionary sector are trading lower amid overall market weakness following weak US data.

JMP Securities analyst Andrew Boone maintained a Buy rating on Rent the Runway (RENT – Research Report) today and set a price target of $40.00. The...

JMP Securities Sticks to Their Buy Rating for Rent the Runway (RENT)

Stock Splits Continue Their 2024 Comeback

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Rent the Runway pops after pointing to improved business trends into the holiday season

Rent the Runway GAAP EPS of -$4.94 beats by $0.05, revenue of $75.9M misses by $0.15M

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Rent the Runway trading resumes

09:30 EST Rent the Runway (RENT) trading halted, volatility trading pause Published first on TheFly – the ultimate source for real-time, market-mov...

Rent the Runway trading halted, volatility trading pause

Rent the Runway, Inc. (RENT) Q3 2024 Earnings Call Transcript

Rent The Runway, Inc. ( ($RENT) ) has released its Q3 earnings. Here is a breakdown of the information Rent The Runway, Inc. presented to its inves...

Rent the Runway, Inc. Reports Q3 2024 Growth

In a report released on December 10, Andrew Boone from JMP Securities maintained a Buy rating on Rent the Runway (RENT – Research Report), with a p...

JMP Securities Keeps Their Buy Rating on Rent the Runway (RENT)

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Press Releases

Rent the Runway, Inc. Announces Fourth Quarter and Full Year 2023 Results

Short Sellers

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Bragar Eagel & Squire is Investigating Certain Officers and Directors of Talis, TaskUs, and RTR on Behalf of Long-Term Stockholders and Encourages Investors to Contact the Firm

Rent the Runway to Report First Quarter 2024 Results on June 6, 2024

Rent the Runway, Inc. Announces First Quarter 2024 Results

Rent the Runway to Participate in Upcoming Investor Conferences

Rent the Runway to Report Second Quarter 2024 Results on September 5, 2024

Rent the Runway, Inc. Announces Second Quarter 2024 Results

Rent the Runway to Report Third Quarter 2024 Results on December 9, 2024

Rent the Runway, Inc. Announces Third Quarter 2024 Results

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