Rent the Runway, Inc. Files 2024 10-K Report

Ticker: RENT · Form: 10-K · Filed: 2024-04-11T00:00:00.000Z

Sentiment: neutral

Topics: 10-K, Rent the Runway, Financial Report, Fiscal Year 2024, SEC Filing

TL;DR

<b>Rent the Runway, Inc. has filed its annual 10-K report detailing its financial performance and operations for the fiscal year ending January 31, 2024.</b>

AI Summary

Rent the Runway, Inc. (RENT) filed a Annual Report (10-K) with the SEC on April 11, 2024. Rent the Runway, Inc. filed its 10-K report for the fiscal year ending January 31, 2024. The filing covers the period from February 1, 2023, to January 31, 2024. Key dates include the fiscal year end of January 31, 2024, and the filing date of April 11, 2024. The company is incorporated in Delaware with its principal business address in Brooklyn, NY. The filing includes data related to common stock (Class A and Class B) and preferred stock.

Why It Matters

For investors and stakeholders tracking Rent the Runway, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Rent the Runway's financial health, operational strategies, and risk factors for the past fiscal year, crucial for investors to assess the company's current standing and future prospects. The detailed financial data and disclosures within the report are essential for understanding the company's revenue streams, profitability, debt levels, and overall market position in the evolving fashion rental industry.

Risk Assessment

Risk Level: medium — Rent the Runway, Inc. shows moderate risk based on this filing. The company operates in the retail sector, which is subject to changing consumer preferences and economic conditions, as indicated by the nature of its business and the need for detailed financial reporting.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Rent the Runway's performance and outlook.

Key Numbers

Key Players & Entities

FAQ

When did Rent the Runway, Inc. file this 10-K?

Rent the Runway, Inc. filed this Annual Report (10-K) with the SEC on April 11, 2024.

What is a 10-K filing?

A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by Rent the Runway, Inc. (RENT).

Where can I read the original 10-K filing from Rent the Runway, Inc.?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by Rent the Runway, Inc..

What are the key takeaways from Rent the Runway, Inc.'s 10-K?

Rent the Runway, Inc. filed this 10-K on April 11, 2024. Key takeaways: Rent the Runway, Inc. filed its 10-K report for the fiscal year ending January 31, 2024.. The filing covers the period from February 1, 2023, to January 31, 2024.. Key dates include the fiscal year end of January 31, 2024, and the filing date of April 11, 2024..

Is Rent the Runway, Inc. a risky investment based on this filing?

Based on this 10-K, Rent the Runway, Inc. presents a moderate-risk profile. The company operates in the retail sector, which is subject to changing consumer preferences and economic conditions, as indicated by the nature of its business and the need for detailed financial reporting.

What should investors do after reading Rent the Runway, Inc.'s 10-K?

Investors should review the detailed financial statements and risk factors in the 10-K to understand Rent the Runway's performance and outlook. The overall sentiment from this filing is neutral.

Key Dates

Filing Stats: 4,603 words · 18 min read · ~15 pages · Grade level 13.4 · Accepted 2024-04-11 16:21:16

Key Financial Figures

Filing Documents

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 16 Item 1B. Unresolved Staff Comments 61 I tem 1C. C ybersecurity 61 Item 2.

Properties

Properties 62 Item 3.

Legal Proceedings

Legal Proceedings 62 Item 4. Mine Safety Disclosures 62 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 63 Item 6. [Reserved] 64 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 65 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 86 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 87 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 127 Item 9A.

Controls and Procedures

Controls and Procedures 127 Item 9B. Other Information 128 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 128 Part III Item 10. Directors, Executive Officers and Corporate Governance 130 Item 11.

Executive Compensation

Executive Compensation 130 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 130 Item 13. Certain Relationships and Related Transactions and Director Independence 130 Item 14. Principal Accounting Fees and Services 130 Part IV Item 15. Exhibits and Financial Statement Schedules 131 Item 16. Form 10-K Summary 135

Signatures

Signatures 136 Unless the context otherwise requires, we use the terms the "Company," "RTR," "Rent the Runway," "we," "us" and "our" in this Annual Report on Form 10-K, or Annual Report, to refer to Rent the Runway, Inc. and, where appropriate, our consolidated subsidiaries. 1 Table of Contents Risk Factor Summary Investing in our Class A common stock involves numerous risks, including the risks described in Part I, Item 1A. "Risk Factors" in this Annual Report on Form 10-K. You should carefully consider these risks before making an investment. Below are some of these risks, any one of which could materially adversely affect our business, financial condition, results of operations, and prospects. We have grown rapidly in recent years and have limited experience at our current scale of operations. If we are unable to manage our growth effectively, our brand, company culture, and financial performance may suffer. The global fashion industry is highly competitive and rapidly changing, and we may not be able to compete effectively. We rely on consumer discretionary spending and have been, and may in the future be, adversely affected by economic downturns and other macroeconomic conditions or trends. Our continued growth depends on our ability to attract new, and retain existing, customers, which may require significant investment in paid marketing channels. If we are unable to cost-effectively grow our customer base, our business, financial condition and results of operations would be harmed. If we fail to retain customers, our business, financial condition, and results of operations would be harmed. If we are unable to accurately forecast customer demand or trends, manage our products effectively and plan for future expenses, our operating results could be adversely affected. We face risks arising from the restructuring of our operations, which could adversely affect our financial condition, results of operations, cash flows, or business reputation. We

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical fact contained in this Annual Report may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "aims," "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "forecasts," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. Forward-looking statements contained in this Annual Report include, but are not limited to statements regarding our future results of operations and financial position, industry and business trends, share-based compensation, business strategy and initiatives, including rental product depth strategy, promotional and marketing strategy and onboarding initiatives, sustainability initiatives, business plans, impacts from our September 2022 and January 2024 restructuring plans and other cost savings initiatives, anticipated cost savings from our 2023 transportation deal with a major national carrier, anticipated future expenditures, product acquisition expectations, compliance with Nasdaq continued listing requirements, impacts from our five-item base subscription offering, anticipated expenditures and compliance with our debt covenants, market growth and our objectives for future operations. The forward-looking statements in this Annual Report on Form 10-K are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we bel

Business

Item 1. Business Overview Our mission is to power women to feel their best every day. Since our f ounding in November 2009, we have built the world's first and largest shared designer closet with thousands of styles by hundreds of brand partners. We give customers access to our "unlimited closet" through our subscription offering ("Subscription") or the ability to rent a-la-carte through our reserve offering ("Reserve"). We also give our subscribers and customers the ability to buy our products through our Resale offering. Our Closet in the Cloud offers a wide assortment of items for every occasion, from evening wear and accessories to ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear and ski wear. We have served approximately 3 million lifetime customers across all of our offerings and we had 173,247 total subscribers (active and paused) as of January 31, 2024. We had 125,954 active subscribers as of January 31, 2024. In fiscal year 2023, 88% of our total revenue was generated by subscribers, compared to 86% in fiscal year 2022. We have created a two-sided discovery engine: customers find new brands they love and brand partners find new customers they need. For customers, we unlock freedom of self-expression through access to our "Unlimited Closet" that has a constantly rotating supply of styles for all occasions, seasons, moods and price points. This leads to deep engagement with our platform as customers discover new brands they love. Brand partners are able to tap into our large, engaged community to discover new customers and get unparalleled data insights. All of this helps them grow and run their businesses and encourages them to partner more closely with us over time. When our customers use Rent the Runway, they experience the magic of accessing an "Unlimited Closet" while saving money and time and reducing clothing waste. We deliver significant financial value to customers, wit

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