Nuuly Outperforms Rent the Runway, Achieving Profitability in Clothing Rental Market
Originally Published 2 years ago — by CNBC
Clothing rental service Nuuly, owned by Urban Outfitters, has achieved profitability, surpassing rival Rent the Runway in reaching this milestone. Nuuly reported an 86% increase in revenue and an operating profit of $300,000 during its fiscal third quarter, with an active subscriber count of 198,000. This marks the first time Nuuly has turned a profit since its launch in 2019. In contrast, Rent the Runway, which has been operating for nearly 15 years, has yet to achieve profitability. The success of Nuuly is attributed to its partnership with Urban Outfitters, which provides inventory and covers some costs. Both companies offer monthly clothing rental services, but Rent the Runway focuses more on designer brands, while Nuuly initially targeted casual wear.