NEW YORK – Lease the Runway Inc. (NASDAQ:RENT) noticed its shares surge 4.58% in after-hours buying and selling on Tuesday after the style rental firm reported better-than-expected second quarter outcomes and raised its full-year income outlook.
The corporate posted a narrower-than-anticipated lack of $4.17 per share for the quarter ended July 31, beating analyst estimates of a $5.47 per share loss. Income rose 4.2% YoY to $78.9 million, exceeding the consensus forecast of $77.1 million.
Lease the Runway’s improved efficiency was pushed by robust momentum in its Reserve providing and better rejoin charges of former prospects. The corporate cited operational, product, and merchandising enhancements that resulted in an enhanced buyer expertise.
Trying forward, Lease the Runway raised its fiscal yr 2024 income progress steerage to between 2% and 6%, up from its earlier outlook. For the third quarter, the corporate expects income within the vary of $75 million to $77 million, in step with analyst projections of $75.6 million.
“We consider that our sustained enchancment in income progress, together with measurable progress on profitability, are indicators that our enterprise is getting stronger,” mentioned Jennifer Hyman, Co-Founder, President and CEO of Lease the Runway.
The corporate additionally reiterated its dedication to attaining free money movement breakeven for fiscal yr 2024, highlighting its concentrate on profitability alongside progress.
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