Style rental firm Lease the Runway discloses drop in income in IPO submitting, Retail Information, ET Retail

Fashion rental company Rent the Runway discloses drop in revenue in IPO filingStyle rental firm Lease the Runway on Monday made public its paperwork for a U.S. inventory market flotation, becoming a member of a bunch of retailers trying to money in on the file growth in capital markets since final yr.

In its submitting with the U.S. Securities and Alternate Fee, the Brooklyn, New York-based firm disclosed a close to 39% drop in income for the fiscal yr 2020.

Lease the Runway, which was based in 2009, lets customers lease garments and store second-hand merchandise from over 750 designer manufacturers. It had confidentially filed for an inventory in July.

The corporate reported 2020 income of $157.5 million, down from $256.9 million a yr earlier. Its web loss widened to $171.1 million in the identical interval, from $153.9 million a yr earlier.

The corporate’s top-line additionally took successful within the first half of this fiscal yr, with income down 9% for the six months ended July 31.

Lease the Runway raised funds final yr at a valuation of $750 million, under its earlier valuation of $1 billion, Bloomberg Information reported in June.

Demand for second-hand garments has jumped in current months as prospects turn out to be more and more aware about their carbon footprint, boosting revenues at subscription-based styling service Sew Repair and on-line resale store ThredUp .

Constructive investor sentiment and fertile market circumstances for brand new listings additionally helped different retailers like eyewear firm Warby Parker and Roger Federer-backed shoemaker On Holding AG ace their market debuts final month. Goldman Sachs & Co, Morgan Stanley and Barclays are the lead underwriters for the providing. Lease the Runway will listing its inventory on Nasdaq below the image “RENT”.

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