Rent the Runway surges after positive forecasts

Rent the Runway

10/04/2024 22:25

** Shares of clothing rental subscription service Rent the
Runway  RENT.O  up 55.4% at $11.50 in trading after the bell 
    ** Co forecasts revenue growth between 1% and 6% vs FY23,
and free cash flow to break even on a full-year basis 
    ** Posts adjusted core profit of $11.2 mln for Q4 vs $7.1
mln last year 
    ** Shares closed ~36% higher before results, bucking the
overall market trend
    ** The benchmark S&P 500 index  .SPX  closed about a percent
down on Wednesday
    ** "It was certainly pricing in a lot more bad news than
good coming into this report, so any good news is going to have
a disproportionately larger reaction," said Art Hogan, chief
market strategist at B Riley Wealth in Boston 
    ** Thomas Hayes, chairman at Great Hill Capital pegs the
stock move to the break-even free cash flow guidance and that 
investors must be liking that RENT is taking costs out of the
business to make it more stable 
    ** As of last close, RENT down ~30% YTD

 (Reporting by Pritam Biswas and Granth Vanaik in Bengaluru)
 ((Pritam.Biswas@thomsonreuters.com))