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Thursday, May 19, 2022

Rent the Runway Inc (RENT) stock plummeted in the after-market. Here’s why

Rent the Runway Inc (RENT) stock was bullish in the last trading session after gaining 6.72% from the previous trading session to $5.72. RENT stock plummeted during the after-market and lost $1.92% of its value to $5.61. RENT declared its financial results for 4Q and FY2021. The company also filed for form 8-K with the SEC on 13 April 2022.


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Rent the Runway is an internet business stage that permits clients to lease, buy-in, or purchase originator attire and adornments. Currently, the firm has a market capitalization of $359.62 million and has its headquarters in Brooklyn, United States of America (USA).

RENT Financial

On 13 April 2022, Rent a Runway released its financial results for 4Q and FY2021, which concluded on 31 January 2022. The firm reported the revenue in Q4 of FY2021 to be $64.1 million versus $33.5 million in Q4 of FY2020. Moreover, the revenue in FY2021 was $203.3 million against $157.5 million in FY20.

Further, RENT’s total loss in 4Q of FY21 was $39.3 million versus $38.8 million in Q4 of FY20. Also, the total loss in FY2021 was $211.8 million against $171.1 million in FY20.

Besides, the loss of $0.62 per stock was reported in 4Q of FY2021 as compared to $3.48 per stock in a similar period of the previous year. Also, the loss of $8.51 per stock was posted against $15.36 per stock in FY2020.

What’s happening?

The downbeat standpoint comes when style retailers are supposed to profit from a post-COVID recuperation popular for the dress and formal clothing, as the United States gears up for the greatest number of functions starting around 1984 after the pandemic postponed weddings and other get-togethers.

Company Outlook

Rent a Runway anticipated the revenue for FY2022 to be between $295 million and $305 million. Also, the company anticipates the quarterly to be between $63.5 million and $$64.5 million.

Conclusion

In conclusion, RENT stock is trading low following the release of its financial results. Shares of RENT fell almost 4% after beforehand ascending around 10% in the after-market session. The stock has fallen around 31% YTD, presenting RENT’s valuation to $360 million.

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