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Rent the Runway (NASDAQ: RENT) stock raised and records exceeded expectations and raised guidance.
Sections of the Brooklyn fashion tower were torn down 61.02% higher in sales at noon on Thursday, it helps a lot from a double-digit profit that is known after the release of its capital.
For the reported quarter, it hit the top and bottom and adjusted EBITDA more than four times expectations. The strong economic figures were boosted by a huge 15% jump in active subscribers from a year ago as consumers look for bargains.
“We are encouraged by recent developments as CyberMonday became our second best subscriber buying day in company history,” CEO Jennifer Hyman told analysts on Wednesday, noting the trend continues.
On the back of these strong results, management raised full-year forecasts and indicated the possibility of positive EBITDA margins for 2022, a prospect they had not seen.
“We continue to believe that all of our revenue and cost improvements will help ensure that RTR can continue to operate in a very competitive environment, while improving our profitability and accelerating our capital expenditure strategy,” CFO Scarlett O’Sullivan said.
It is worth noting that the stock has attracted little attention. As of the earnings date, short interest stood at 16.28% of the float.
Read more about why SeekingAlpha contributor Michael Wiggins De Oliveira says the market got Rent the Runway wrong.
