Latest news with #Nuuly
Business of Fashion
5 days ago
- Business
- Business of Fashion
Rent the Runway Forecasts Double-Digit Subscriber Growth in 2025
After hitting a key profitability milestone last year, Rent the Runway is back in growth mode. The rental service ended its most recent quarter with a record number of active subscribers — up 1 percent from last year — after setting in motion plans to double its inventory in 2025, the company said Thursday. Revenue in the three months ending April 30 fell 7.2 percent year-over-year, to $70 million, while net loss increased to $26 million from $22 million in the first quarter of 2024. For the full fiscal year, Rent the Runway forecasts 'double-digital growth' in active subscribers. Shares rose 12 percent Thursday afternoon. Earlier this year, the company announced an aggressive plan to increase inventory, responding to an oft-cited point of friction among users that new or popular products are frequently out-of-stock. In conjunction with its 'We Heard You' campaign, Rent the Runway increased inventory orders by 24 percent year on year in the first quarter of 2025 and has plans to ramp up inventory by 134 percent in the remainder of the year, projecting to launch more than 90 new brands. Customer response has been encouraging based on improved engagement, the company said. Subscriber retention is at a four-year high, co-founder and chief executive Jennifer Hyman told The Business of Fashion, while products in the first quarter have seen a 23 percent rise in share of views, with 46 percent more hearts — how users favour products to select what pieces to rent — compared to last year. 'Last year, we proved the business model and the unit economics of the model work. The industry of rental is now mainstream. Millions of women are now renting clothes every single year, and now is the time to invest again in growth,' Hyman said. 'Given the model fundamentally works, we're playing offense.' Last year, Urban Outfitter's rental service Nuuly eclipsed Rent the Runway to become the biggest fashion rental company in terms of active subscribers. As part of its growth plan, Rent the Runway is leaning into what makes its offering differentiated, Hyman said. Whereas the Nuuly customers favour more casual styles, the Rent the Runway shopper seeks professional and occasion-driven styles with a 'playful, feminine and polished aesthetic,' as Hyman puts it. Rent the Runway has also expanded its slate of customer features, including a styling concierge service, a personalised website interface and back-in-stock notifications. 'I have never had more conviction for the future of the company,' Hyman said. Learn more: How Rent the Runway Came Back From the Brink The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.
Yahoo
30-05-2025
- Business
- Yahoo
Market Hangover Beckons for Gen Z Darling Urban Outfitters (URBN)
Urban Outfitters (URBN) is bucking the trend. The retail company that targets younger demographics is posting record revenue and cash generation amid an environment characterized by low consumer confidence. A closer look reveals that the company is making inroads with 'Gen Z,' and it's not just its clothes getting the attention. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter However, with its stock up 80% in the last year, I believe the market has fully priced in Urban's renewed potential in a fiercely competitive retail clothing industry. This makes me cautiously neutral on URBN going forward. Earlier this month, Urban Outfitters reported its first-quarter earnings for the period ending April 30, posting record sales and a net income of $108.3 million. A major driver of this growth is Nuuly, the company's rapidly expanding clothing rental brand. Nuuly's revenue surged from $77.9 million in Q1 2024 to $124.4 million in Q1 2025. The concept is both innovative and timely: for $98 per month, customers, primarily women, can rent a curated selection of apparel, mostly from Urban's own brands. They wear the items for a month, then return them—no commitment required. It's essentially an ever-rotating wardrobe, aligning perfectly with Gen Z's preference for sustainable consumption. From a business perspective, Nuuly is a clever play. It introduces a recurring revenue stream into an industry traditionally dependent on one-time purchases. Each garment can generate revenue multiple times before showing signs of wear, dramatically increasing its lifetime value. Additionally, Nuuly provides Urban with real-time data on style preferences and emerging trends—insights that are impossible to glean from conventional retail sales alone. In short, the rental economy is gaining traction in the fashion world, and Nuuly is positioning Urban Outfitters as a frontrunner in this growing space. Nuuly is just one piece of Urban Outfitters' broader strategy to connect with younger consumers. But it's not only the products that appeal to Gen Z—it's the experience. The company has recently doubled down on immersive retail, reimagining its stores as more than just shopping destinations. A standout example is its collaboration with Nike on 'On Rotation,' an initiative that turns retail spaces into rotating, theme-driven discovery hubs. The goal: make each visit feel fresh, engaging, and uniquely memorable. Beyond Nuuly, Urban's other brands are also performing well. Anthropologie and Free People posted roughly 8% growth in the first quarter, while FP Movement—a sub-brand focused on activewear—delivered an impressive 25% growth in its retail segment. These gains are helping to offset stagnation in the core Urban Outfitters brand. That said, Urban's valuation is starting to look a bit stretched. The stock is trading at an all-time high, and its Price-to-Earnings (P/E) ratio of 15.1 sits slightly above the retail sector median. While macroeconomic pressures haven't significantly impacted the business so far, Urban remains exposed to broader risks like inflation, geopolitical trade tensions, and weak consumer sentiment. If economic conditions deteriorate, discretionary spending—especially on non-essential services like a Nuuly subscription—could be among the first to go. However, the elephant in the room is competition. URBN is caught between fast-fashion heavyweights like Shein and H&M, who offer similar styles at lower prices, and premium brands at the higher end of the market. That leaves Urban targeting a price-sensitive Gen Z audience that's accustomed to affordability without sacrificing style. Meanwhile, the company's turnaround efforts are still in the early stages. Revitalizing its core Urban Outfitters brand and scaling Nuuly profitably will be critical. Any misstep in execution could weigh heavily on the stock. On Wall Street, URBN sports a Moderate Buy consensus rating based on five Buy, six Hold, and one Sell ratings in the past three months. URBN's average price target of $70.50 implies a downside potential of 3% in the next twelve months. Earlier this month, Bank of America Securities analyst Lorraine Hutchinson rated URBN a Buy with a price target of $80. She highlighted international expansion and Nuuly as key growth opportunities. Moreover, 'Anthropologie and Free People continue to see strong sales growth, with Anthropologie benefiting from increased store and online traffic and Free People expanding through new store openings.' Urban's recent financial performance marks the early stages of a promising turnaround. The company is making meaningful progress with its target demographic, thanks in large part to innovative offerings like Nuuly. This subscription-based model has opened a valuable new revenue stream while positioning Urban for long-term growth. And while the Urban Outfitters brand continues to lag, other segments—such as Anthropologie and FP Movement—present encouraging near-term momentum. That said, much of this optimism is already reflected in the stock's price. Valuation reflects high expectations, and several risks could disrupt the company's trajectory. Macroeconomic pressures—ranging from tariffs to shifts in consumer spending—could weigh on both margins and growth. Moreover, fashion is inherently fickle; any of Urban's brands could quickly fall out of favor, much like the namesake label has. All things considered, the most prudent move may be to hold. This isn't the time to chase the rally, but it may also be premature to cash out. 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Fast Company
27-05-2025
- Business
- Fast Company
Nuuly just made fashion rentals profitable — Here's how
After six years in the game, Nuuly, the clothing rental service from Urban Outfitters, has done what few thought possible: turned a profit. In an industry full of flashy failures and billion-dollar burns, Nuuly is quietly winning with a strategy that's shaking up fashion and business.
Business of Fashion
22-05-2025
- Business
- Business of Fashion
Urban Outfitters Beats Analyst Expectations Off Strong Sales Growth
Urban Outfitters Inc. beat first-quarter sales and profit expectations in its second consecutive quarter of steady revenue gains. The Philadelphia-based company's sales rose 10.7 percent to $1.33 billion, while earnings per share jumped 78.5 percent to $1.16, beating expectations by 39.56 percent. Net same-store sales rose 4.8 percent, led by a 6.9 percent increase at Anthropologie, followed by 3.1 percent growth at Free People and 2.1 percent growth at Urban Outfitters. Nuuly subscription segment net sales rose 59.5 percent, driven by a 52.9 percent year-on-year increase in average active subscribers in the first quarter. Stock jumped 14.48 percent in extended trading. Learn more: Urban Outfitters' Clothing Rental Platform Turns Its First Annual Profit Rental platform Nuuly reported an operating income of $13.3 million last year, a major benchmark for a concept that's long been associated with rapid growth and steep losses.
Buzz Feed
20-05-2025
- Entertainment
- Buzz Feed
38 Must-Pack Fashion Pieces For Your Travel Photos
A two-piece tank top and shorts set with drawstring shorts that'll pair nicely with other tops in your suitcase and a just-special-enough ruffled crop top in airy fabric that'd look cute with a pair of jeans. Last summer, I wore this walking around Cagliari, Sardinia, and down ~700 stairs to a cave (and then promptly back up) so I can attest it makes for excellent photo ops *and* is airy enough for such activities. A satin two-piece set might just make you wanna book a trip just so you have somewhere to wear it. (Though you should totally wear it at home, too!) A midi corset dress to help scratch that cottagecore itch for the TikTok-famous House of CB Carmen dress. Except for nearly $200 less. An *very popular* off-the-shoulder jumpsuit suited for just about any sightseeing needs. A floral mini dress if you've gotta look really cute, really fast. Or perhaps have known about your weekend trip for six months, but waited 60 minutes before you leave to start packing. This is a sure bet! A striped set you can mix and match with other items to *look* like you're maintaining your cool composure — even if you're in the middle of traveling with a group of people you've decided you'll never travel with again. A slouchy top and pants set that'll look SO chic as you eat your body weight in egg tarts during a three-day stint in Lisbon. (Did I just predict my own future? Likely!) A flowy maxi skirt can somehow magically end up in all your vacation photos with every single top you packed. (And maybe even a swim top!!) And its drawstring waist means that you'll stay extra comfy during your whole trip. A pair of high-waisted palazzo pants to also give your legs a vacation from constricting jeans and pants. Plus! Reviewers say they're quire wrinkle-resistant. A six-piece monthly clothing subscription from Nuuly can give you some stylish options if you're feeling meh about your closet's current inhabitants but know you don't need to buy a bunch of new stuff. And if you want to avoid repeating outfits from your last vacation, this'll be much quicker than looking through your camera roll to see what you wore last time. A two-pack of beach wraps to help you style your beloved bikini you bought who-knows-when in between dips in the ocean. A racerback tank top to throw on with basically any bottom that you own. And reviewers say it's compressive enough that you can skip the bra with it — which is especially welcome when it's THIS hot outside. Or a sleeveless racerback bodysuit that'll help you get the coveted tuck for a smooth look with your jeans without having to actually skillfully tuck in your shirt. A moisture-wicking sleeveless workout dress because I don't know about you, but I'm seeing more and more people wearing sweat-wicking workout gear on the reg while doing errands (and not just leggings!) to help survive in the heat. So you'll likely reach for this super often. AND it has a few shorts underneath and a built-in bra! Some linen high-waisted shorts with an adorable, comfy, *and* versatile stretchy waistband that'll turn out to be your suitcase's MVP. Reviewers love the pockets and say the inseam helps prevent chafing — which is essential for when you're trying to see as much of London as possible during your 48-hour layover. A chic tank and wide-leg pants set to make you look like a fancy jetsetter, even if you're doing economy the whole way. Hey, it still gets you there! Some flowy shorts could be the minimum (but adequate) amount of fabric to wear on your next tropical excursion. A crossover one-piece swimsuit might just convince others that yes, one of those yachts docked just over there is yours. A wrap-look crop top to stylishly wear with most any bottom you could in super humid locales. A ruffly puff-sleeve top and midi skirt duo you'll realize is genius for 1) its styling versatility and 2) the skirt length will *look* breezy without giving the locals a view of your behind you'd like to reserve for the beach. A plain Madewell tee as THE perfect base for all of your 333 coordinating outfits. Yep, your packing list needs a few basics, too! A bodycon T-shirt dress with a tulip hem for wearing with sneakers for sightseeing in hot weather or with a blazer or moto jacket with heels for drinks at night. (Chunky heels of course. Because walking and cobblestone streets.) A chic printed top-and-short set that'll be the perfect ensemble to watch all those (often windy) Greek-isle sunsets. A one-shoulder crop top just begging to be photographed as you walk along a beach that looks like it's straight out of a postcard. A striped long-sleeve shirt can pair perfectly with your signature red lipstick color and any bottoms you've packed. Cheers to mixing and matching creatively and saving more room for that cute scarf you bought your mom. A striped cap-sleeve top that'll be a super breezy option for when you're pouring sweat walking around within the walls of Old Town Dubrovnik with approximately a million other eager tourists. Some 6-inch inseam shorts can make you forget about the rest of your bike shorts after you give 'em a few spins. They REALLY stay put whether you're walking around town, hiking, or strapped into a "Superman" zipline rig you convinced your friends to try. A drawstring bodycon dress with some major versatility — you can adjust the drawstring for the perfect length and look, then throw all kinds of outerwear over it as needed. (I own it in black and wear it at least once a week — including to a club in Havana!) Some super chic belted linen pants you can style with your body suit, crop tops and, well, just all sorts of tops. You'll look like the definition of "pulled together." A splurgey-looking coverup with a slit on the side to give you some more movement as you hoof it from your room to a coveted pool chair. A showstopping colorful print dress that'll be the perfect, cheerful piece to wear after you got a weird sunburn on your upper thighs and they just need to breathe. A satin top can tuck into a denim skirt, work as a shell underneath a blazer, or just help you look a little more dressed up for those once-in-a-lifetime tourist photo ops! You hiked all the way up to the top of the Acropolis in Athens. Facebook is gonna KNOW. A breezy tank-and-shorts set with a fun trim to elevate it past a neutral. Also its elastic waist and crop top make it the PERFECT ensemble for a 10-minute hike in Sardinia's Blue Zone. Just saying! An airy nap dress I own and have worn for so many travel photo ops. It's super easy to adjust the puff sleeves from on- to off-the-shoulder to fit your mood — or when you need to cover your shoulders and knees to go into a gorgeous cathedral. A ladylike polka-dot number that tbh you could wear to brunch with your great-aunt. But it also has accommodating stretch, barely wrinkles, and will look so nice in any photos where you wanna look fab but don't wanna upstage your bucket-list surroundings. A slip dress will look incredibly chic and take up a minuscule amount of space in your suitcase. (When you can, try to opt for items made of thinner fabric so you can more easily fit stuff into your packing cubes.) A wrap dress can let ya show lots of leg while you sip an aeperol spritz at a cafe (while still being covered up enough to get let into a cathedral afterward). Anti-chafing Thigh Society shorts with a pocket that'll be extra sneaky when you're wearing it as a base layer — though it is opaque enough for you to wear when you sweet-talked your pals into ziplining at an eco-adventure park.
