Rent the Runway drops on weak annual revenue forecast
13/04/2023 17:09
(Updates)
** Shares of clothing rental firm Rent the Runway Inc
RENT.O fall as much as 14% to $2.69
** Co forecast annual sales below Wall Street estimates on
Wednesday
** Says CFO Scarlett O'Sullivan to step down later in May;
names Sid Thacker, current senior vice president of finance, as
CFO
** Jefferies cuts PT on RENT to $9 from $10, citing co's
weak outlook is due to its seasonal marketing investments
** Average selling price is expected to decline by 4% due to
increasing lower-tier subscriptions - brokerage
** Co' Q4 revenue beat estimates; however, reported loss
smaller-than-expected
** RENT expects highest sequential growth in active
subscribers in Q1 and Q3, O'Sullivan said in post earnings call
** Added the price increase in the previous year
significantly impacted Q2, leading to the first sequential
decline in active subscribers in Q2 in the last 4 years
** Stock has fallen 11.5% so far in 2023
(Reporting by Anne Florentyna Gnanaraja Sekar in Bengaluru)
((AnneFlorentyna.GnanarajaSekar@thomsonreuters.com;))