By Sabela OjeaShares of Rent the Runway dropped Wednesday, a day after the company said it expects lower revenue in the fiscal fourth quarter after losing more paying subscribers in the latest quarter. After the market close Tuesday, the subscription fashion rental company guided for revenue of at least $74 million for the fourth quarter, down from reported revenue of $75.4 million a year earlier. Analysts polled by FactSet forecast revenue of $74.2 million. For the year, the company kept its revenue outlook unchanged at $296.4 million, but withdrew its free cash flow guidance. Rent the Runway's forecast comes after seeing another drop in revenue in the Oct. 31 quarter, as its subscriber base continued to get squeezed amid financial efforts to lower churn levels among newer paying members.

Source: Wall Street Journal December 07, 2023 05:43 UTC