Rent the Runway, Inc. ( RENT ) reported its fourth-quarter financial results after the bell Wednesday. Here's a look at the highlights.

The Details:

Rent the Runway ( RENT ) reported quarterly losses of $7.02 per share which missed the analyst consensus estimate of a loss of $6.53 by 7.5%.

Quarterly sales clocked in at $75.8 million which beat the analyst consensus estimate of $74.1 million by 2.29% and represents an increase over sales of $75.4 million from the same period last year.

“2023 was a year of significant improvements to the customer experience that we believe have set the foundation for a milestone fiscal year 2024,” said Jennifer Hyman, CEO of Rent the Runway ( RENT ).

“We launched a premium personal concierge service to style our customers, made it easier for customers to discover inventory they love, and created a more aspirational product experience. As a result, NPS today is at the highest level in several years, customers have been buying more inventory from us, and customer retention has markedly improved YOY,” added Hyman.

Outlook: 

“Over the past several years, we have reduced fixed costs significantly and made considerable progress towards building a more capital-light model. We expect these actions to result in free cash flow breakeven for fiscal year 2024. Importantly, we believe that the cost and capital expenditure decisions that are important components of our free cash flow breakeven plan have already been made. We have conviction that Rent the Runway ( RENT ) is poised to exit fiscal year 2024 as a sustainable, growing, and free cash flow breakeven business,” said Sid Thacker, CFO of Rent the Runway ( RENT ).

Rent the Runway ( RENT ) sees first-quarter revenue between $73 million and $75 million, versus the $74.95 million estimate. The company expects fiscal year 2024 revenue growth of between 1% and 6% compared to fiscal year 2023.

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RENT Price Action: Rent the Runway ( RENT ) shares rose more than 36% during the regular session Wednesday and are up an additional 58.6% after-hours at $11.74 at the time of publication.

Image: Ahmad Ardity from Pixabay