Here are 1-3 brief analogies for Rent the Runway (RENT):

• Netflix for designer fashion
• Zipcar for designer clothes

• Subscription Rental Service: A membership-based service offering ongoing access to rent designer apparel and accessories, with flexible item swaps.
• One-Time Rental Service: A service allowing customers to rent individual designer apparel and accessories for specific events or short durations without a subscription.
• Pre-Owned Item Resale: A service enabling customers to purchase previously rented designer apparel and accessories from its fleet at discounted prices.

Rent the Runway (symbol: RENT) primarily sells its services directly to **individual consumers**, making it a Business-to-Consumer (B2C) company. While they may have some minor business partnerships, their core revenue is derived from individuals who rent or subscribe to access designer apparel and accessories.

The company serves the following categories of individual customers:

• Occasion-Specific Renters: These customers utilize Rent the Runway for one-time or infrequent rentals to acquire designer dresses, gowns, or accessories for special events such as weddings, galas, parties, formal dinners, or professional functions. They prioritize access to specific high-end pieces for a particular moment without the need for purchase.
• Fashion-Forward Subscribers (Wardrobe Rotation): This category includes individuals who subscribe to a monthly plan to continuously refresh their everyday, work, and social wardrobes. They seek variety, enjoy experimenting with new styles and designers, and value the convenience and cost-effectiveness of accessing a rotating closet of designer apparel without the commitment of ownership.
• Value & Sustainability-Minded Consumers: These customers are motivated by the economic benefits of renting (accessing luxury fashion at a fraction of the retail price) and/or the environmental benefits of participating in a circular fashion economy. They prioritize smart consumption, reducing their fashion footprint, and making conscious choices about their wardrobe while still enjoying high-quality designer clothing.

Jennifer Hyman, Chief Executive Officer and Co-Founder

Jennifer Hyman is the co-founder and Chief Executive Officer of Rent the Runway, which she co-founded in 2009. Prior to founding Rent the Runway, Hyman was the Director of Business Development at IMG's fashion division, ran an online advertising sales team for WeddingChannel.com, and worked as an in-house entrepreneur at Starwood Hotels, where she created the hotel's first wedding business. She led Rent the Runway through its IPO in 2021.

Sid Thacker, Chief Financial Officer

Sid Thacker has served as Rent the Runway's Chief Financial Officer since May 2023. Before this role, he was the Senior Vice President of FP&A at the company from July 2022 to May 2023. Prior to joining Rent the Runway, Mr. Thacker held several leadership positions in investment and advisory firms, including Investment Partner at Coalition Investment Partners from January 2020 to March 2022, CEO of SAR Capital Advisors, LP from June 2018 to January 2020, and Founder, CEO, and CIO of Signpost Capital Advisors, LP from August 2011 to December 2017.

Scarlett O'Sullivan, Former Chief Financial Officer

Scarlett O'Sullivan served as Chief Financial Officer at Rent the Runway for eight years, from September 2015 until May 2023, and played a pivotal role in launching and scaling the company's subscription business and taking the company public in 2021. Before her time at Rent the Runway, she gained extensive financial expertise leading technology IPOs as an investment banker and through venture capital investment experience at SoftBank Capital and SoftBank China & India Holdings.

Anushka Salinas, President and Chief Operating Officer

Anushka Salinas serves as the President and Chief Operating Officer of Rent the Runway, leading teams in technology, product, marketing, and analytics. She joined Rent the Runway in December 2018 as Chief Revenue Officer and previously was an early leader at Resonance, a venture operating company that invests in and operates early-stage fashion brands.

Drew Rau, Chief Supply Chain Officer

Drew Rau has served as Rent the Runway's Chief Supply Chain Officer since September 2023. He joined Rent the Runway in November 2021 as VP, Capacity Management and Planning, Transportation, and Loss Prevention, and later became SVP, Supply Chain and Inventory from January 2023 to August 2023. Prior to Rent the Runway, Mr. Rau served as VP Global Supply Chain at Overstock.com from November 2020 to November 2021, and as VP of Operations, Agricultural Operations and People Safety at Bowery Farming, an indoor agriculture startup, from February 2019 to November 2020. He also held several roles of increasing seniority at Amazon from November 2014 to February 2019, including Director of Fulfillment.

• The rapid growth and mainstream adoption of the resale market. Platforms like ThredUp, Poshmark, and The RealReal offer consumers the ability to purchase pre-owned designer items at a discount, providing a strong alternative to renting for those seeking sustainable fashion or access to high-end brands. The increasing comfort and preference for buying and selling pre-owned items directly competes for consumer spend that might otherwise go towards rental services, by offering ownership and potential for re-sale.

• The accelerating market share and strong performance of direct competitor Nuuly. Backed by Urban Outfitters, Nuuly has demonstrated significant and consistent subscriber growth and profitability in the fashion rental subscription space. This strong, well-funded competitor offers a similar value proposition and is rapidly capturing market share, posing a substantial challenge to Rent the Runway's customer acquisition and retention efforts.

The addressable markets for Rent the Runway's main products and services are as follows:

Online Clothing Rental

• U.S. Market: The North American online clothing rental market accounted for 38.7% of the global market in 2024. Based on the global market size of $2.61 billion in 2024, the U.S. (as a dominant part of North America) market is estimated to be approximately $1.01 billion in 2024.
• Global Market: The global online clothing rental market was valued at USD 2.61 billion in 2024 and is projected to reach USD 39.93 billion by 2032, growing at a compound annual growth rate (CAGR) of 40.60% during the forecast period.

Resale of Used Apparel

• U.S. Market: The U.S. secondhand apparel market is estimated to be worth $56 billion as of 2025. This market is projected to reach $74 billion by 2029.
• Global Market: The global secondhand apparel market is expected to reach $367 billion by 2029, growing at a CAGR of 10%.

1. Growth in the Reserve Business: Rent the Runway is focusing on and seeing momentum in its "reserve business," particularly for special event rentals. This area has shown significant new customer growth without incremental marketing dollars and is considered a strategic priority.
2. Enhanced Subscriber Loyalty and Retention: The company aims to drive revenue growth by increasing subscriber loyalty and improving retention rates. Initiatives include personalized customer engagement, a 60-day risk-free rental promise for new members, back-in-stock notifications, stylist consultations, and personalized onboarding calls. These efforts are designed to reduce churn and foster long-term subscriber relationships.
3. Strategic Inventory Management and "Share by RTR" Model: Rent the Runway is shifting towards a more capital-light inventory acquisition model through its "Share by RTR" program and exclusive designs. This involves revenue-sharing partnerships with brands, reducing upfront inventory costs, and focusing on high-demand, high-margin styles. This strategy is expected to improve inventory efficiency and customer satisfaction.
4. Diversified and Organic Customer Acquisition: Rent the Runway is investing in a variety of marketing initiatives, including brand campaigns, celebrity partnerships for curated closet rentals, campus tours, and social media engagement. Additionally, significant improvements in site performance and organic digital marketing driven by user-generated content are aimed at cost-effectively expanding its customer base.
5. Technology and AI-Powered Customer Experience: The company is leveraging technology and artificial intelligence (AI) to enhance the customer experience. This includes personalized app home screens, tiered rewards systems, preview tools, and the deployment of AI to summarize customer reviews and improve fit recommendations, all contributing to a more relevant and engaging experience for subscribers.

Share Issuance

• In October 2025, shareholders approved the issuance of Class A common shares related to the conversion of a term loan as part of a recapitalization plan.
• Shareholders also approved the issuance of shares in connection with a rights offering backstop agreement dated August 20, 2025.
• A $12.5 million rights offering in October 2025 allowed shareholders to purchase up to 3,063,725 shares at $4.08 per share, generating approximately $12.5 million in primary gross proceeds.

Inbound Investments

• As part of a recapitalization plan closed in October 2025, an investor group (Aranda Principal Strategies (APS), STORY3 Capital Partners, and Nexus Capital Management) contributed $20 million in new cash to the company's balance sheet.
• In August 2025, Aranda Principal Strategies (APS) converted approximately $243 million of its debt investment into common equity at an effective conversion price of $9.23 per share.
• The recapitalization transactions in October 2025 strategically reduced Rent the Runway's total outstanding debt from $340 million to $120 million and extended its maturity to 2029.

Capital Expenditures

• Purchases of rental product, which represent a significant portion of capital expenditures, were $(42.0) million in Q2 2025, compared to $(26.3) million in Q2 2024.
• For fiscal year 2025, Rent the Runway plans to add over 80 new brands to its platform, with 56 already launched in the first half of the year.
• The company is focusing on increasing the quantity and desirability of rental product purchases and shifting to an "asset-light" model where fashion brands supply inventory and share in rental revenues.