Rent The Runway Inc RENT shares are trading lower in Monday’s after-hours session. The company reported better-than-expected financial results but issued guidance below analyst estimates and announced a 24% workforce reduction.
Rent The Runway said second-quarter revenue increased 64% year-over-year to $76.5 million, which beat average analyst estimates of $73.26 million, according to Benzinga Pro. The company reported a quarterly net loss of 53 cents per share, which beat average analyst estimates of 65 cents per share.
Rent The Runway also announced a restructuring plan to reduce costs, streamline its organizational structure and drive operational efficiencies. The plan primarily includes a total workforce reduction of approximately 24% of corporate employees, reorganizing certain functions, and reallocating resources to continue to focus on customer experience and growth initiatives.
“The restructuring plan we announced today underscores our commitment to building RTR into a business that is highly profitable, has strong margins, and is self-funding. These actions are intended to accelerate our path to profitability, while allowing us to continue to deliver more value to our customers and drive strong revenue growth,” said Jennifer Hyman, co-founder, and CEO of Rent the Runway.
Rent The Runway expects third-quarter revenue to be between $72 million and $74 million versus the estimate of $79.72 million. The company expects full-year revenue to be between $285 million and $290 million versus the estimate of $303.84 million.
RENT Price Action: Rent The Runway has a 52-week high of $8.51 and a 52-week low of $2.99.
The stock was down 18.90% in after-hours at $4.00 at the time of publication.
Photo: Ahmad Ardity from Pixabay.
Image and article originally from www.benzinga.com. Read the original article here.