Rent the Runway (Rent the Runway) Gross Margin %

: 73.48% (As of Jan. 2024)

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Gross Margin % is calculated as gross profit divided by its revenue. Rent the Runway's Gross Profit for the three months ended in Jan. 2024 was $55.7 Mil. Rent the Runway's Revenue for the three months ended in Jan. 2024 was $75.8 Mil. Therefore, Rent the Runway's Gross Margin % for the quarter that ended in Jan. 2024 was 73.48%.

The historical rank and industry rank for Rent the Runway's Gross Margin % or its related term are showing as below:

RENT' s Gross Margin % Range Over the Past 10 Years
Min: 54.03 Med: 68.89 Max: 71.16
Current: 71.16

During the past 5 years, the highest Gross Margin % of Rent the Runway was 71.16%. The lowest was 54.03%. And the median was 68.89%.

RENT's Gross Margin % is ranked better than
94.79% of 1095 companies
in the Retail - Cyclical industry
Industry Median: 36.86 vs RENT: 71.16

Rent the Runway had a gross margin of 73.48% for the quarter that ended in Jan. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Rent the Runway was 0.00% per year.

Rent the Runway Gross Margin % Historical Data

The historical data trend for Rent the Runway's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Rent the Runway Annual Data

Trend

Jan20

Jan21

Jan22

Jan23

Jan24

Gross Margin %

54.03

66.35

69.55

68.89

71.16

Rent the Runway Quarterly Data
	Jan20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Gross Margin %												69.89	70.49	70.28	70.34	73.48

Competitive Comparison

For the Apparel Retail subindustry, Rent the Runway's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Rent the Runway Gross Margin % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Rent the Runway's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Rent the Runway's Gross Margin % falls into.

Rent the Runway Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Rent the Runway's Gross Margin for the fiscal year that ended in Jan. 2024 is calculated as

Gross Margin % (A: Jan. 2024 )	=	Gross Profit (A: Jan. 2024 )	/	Revenue (A: Jan. 2024 )
	=	212.2	/	298.2
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(298.2 - 86)	/	298.2
	=	71.16 %

Rent the Runway's Gross Margin for the quarter that ended in Jan. 2024 is calculated as

Gross Margin % (Q: Jan. 2024 )	=	Gross Profit (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	55.7	/	75.8
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(75.8 - 20.1)	/	75.8
	=	73.48 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Rent the Runway (NAS:RENT) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Rent the Runway had a gross margin of 73.48% for the quarter that ended in Jan. 2024 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Rent the Runway Gross Margin % Related Terms

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Rent the Runway (Rent the Runway) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Rent the Runway Inc (NAS:RENT) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

10 Jay Street, Brooklyn, NY, USA, 11201

Website

https://www.renttherunway.com

Rent the Runway Inc is an e-commerce platform that allows users to rent, subscribe, or buy designer apparel and accessories.

Executives

Jennifer Hyman	director, 10 percent owner, officer: Chief Executive Officer	767 FIFTH AVENUE, C/O THE ESTEE LAUDER COMPANIES INC., NEW YORK NY 10153
Cara Schembri	officer: GC & Secretary	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Brian Donato	officer: Chief Supply Chain Officer	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Siddharth Thacker	officer: Chief Financial Officer	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Andrew Rau	officer: SVP, Supply Chain & Inventory	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Sarah K Tam	officer: Chief Merchant Officer	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Anushka Salinas	officer: President & COO	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Becky Case	officer: SVP, Engineering	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Larry Steinberg	officer: Chief Technology Officer	1000 WINDWARD CONCOURSE, SUITE 250, ALPHARETTA GA 30005
Emil Michael	director	C/O DPCM CAPITAL, INC., 382 NE 191 STREET, # 24148, MIAMI FL 33179
Scarlett O'sullivan	officer: Chief Financial Officer	225 WEST WASHINGTON STREET, INDIANAPOLIS IN 46204
Andrea Alexander	officer: Chief People Officer	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Carley Roney	director	C/O XO GROUP INC., 195 BROADWAY, 25TH FLOOR, NEW YORK NY 10007
Beth J Kaplan	director	1716 LOCUST STREET, DES MOINES IA 50309
Timothy E Bixby	director	C/O SHUTTERSTOCK, 350 FIFTH AVENUE, 21ST FLOOR, NEW YORK NY 10118