In its filing with the U.S. Securities and Exchange Commission, the Brooklyn, New York-based company revealed an almost 39% drop in revenue for fiscal 2020.
Rent the Runway, which was founded in 2009, allows users to rent clothes and purchase second-hand items from over 750 designer brands. She had confidentially filed an application for registration in July.
The company reported 2020 revenue of $ 157.5 million, up from $ 256.9 million a year earlier. Its net loss widened to $ 171.1 million in the same period, from $ 153.9 million a year earlier.
The company’s revenue was also affected in the first half of this fiscal year, with revenue down 9% for the six-month period ended July 31.
Rent the Runway raised funds last year at a valuation of $ 750 million, below its previous valuation of $ 1 billion, Bloomberg News reported in June.
The demand for second-hand clothing has jumped in recent months as customers become more aware of their carbon footprint, increasing revenue for the Stitch Fix subscription hairstyling service and the ThredUp online resale store.
Positive investor sentiment and fertile market conditions for new listings also helped other retailers like eyewear company Warby Parker and Roger Federer-backed shoemaker On Holding AG make their market debut last month. Goldman Sachs & Co, Morgan Stanley and Barclays are the main underwriters of the offer. Rent the Runway will list its shares on the Nasdaq under the symbol “RENT”.