Why Rent The Runway Shares Are Skyrocketing Today

Rent The Runway, Inc. RENT shares are skyrocketing in the premarket session on Thursday.

Yesterday, after the closing bell, the firm reported its fourth-quarter financial results, where the company registered quarterly losses of $(7.02) per share, which missed the analyst consensus estimate of a loss of $(6.53) by 7.5%.

Read More: Rent The Runway Stock Soars On Mixed Q4 Results

Gross Profit was $29.9 million, representing a decrease of 10.2% year over year. Gross margin contracted to 39.4% from 44.2% in the year-ago period.

Quarterly sales clocked in at $75.8 million, which beat the analyst consensus estimate of $74.1 million. 

The quarterly adjusted EBITDA jumped to $11.2 million from $7.1 million. Adjusted EBITDA margin expanded to 14.8% from 9.4% a year ago.

As of January 31, 2024, cash and cash equivalents was $84.0 million.

Rent the Runway sees first-quarter revenue between $73 million and $75 million (consensus $74.95 million).

The company expects fiscal year 2024 revenue growth of between 1% and 6% compared to fiscal year 2023.

According to Benzinga Pro, RENT stock has lost over 88% in the past year. 

Price Action: RENT shares are trading higher by 33.8% to $9.90 premarket on the last check Thursday. 

Photo via Shutterstock