Rent the Runway, which went public in 2021, recently implemented a one-for-20 reverse stock split to meet the minimum bid price requirement for continued listing on the Nasdaq. Despite past challenges with product quality and outdated assortments, the company reported a 10% year-over-year increase in customer loyalty rate in Q4 and plans new designer launches for 2024. As of last count, the company's shares were up 138.7% at $17.82, giving it a market capitalization of about $63.3 million.
Key takeaways:
- Rent the Runway's shares surged by over 220% after the company announced its plans to leverage artificial intelligence for growth in the current year.
- The company anticipates its revenue to grow between 1% and 6% in the current fiscal year, with a breakeven free cash flow.
- Last week, Rent the Runway implemented a one-for-20 reverse stock split to maintain its listing on the Nasdaq, resulting in a free float of about 2.6 million shares.
- The company, which went public in 2021, is planning new designer launches for 2024 and reported a 10% year-over-year increase in customer loyalty rate in the fourth quarter.