Rent the RunwayRENT -2.67%51 Gross Margin % is 73.75% as of Apr. 2026, which is 6% above its 10-year median of 69.55. GuruFocus rates RENT with a GF Score™ of 51/100 and a GF Value™ of $3.69 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,117 Retail - Cyclical companies, Rent the Runway ranks better than 95.34% on this metric.
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: 69.55 Max: 73.81
Current: 73.81
During the past 7 years, the highestGross Margin % of Rent the Runway was 73.81%. The lowest was 54.03%. And the median was 69.55%.
RENT's Gross Margin % is ranked better than 95.34% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 36.23
vs RENT: 73.81
Rent the Runway had a gross margin of 73.75% for the quarter that ended in Apr. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Rent the Runway was 1.90% per year.
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 73.75% for the quarter that ended in Apr. 2026 => 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
Rent the Runway Gross Margin % Historical Data
* Premium members only.
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.
RENT vs TLYS, DLTH, CURV: Gross Margin % 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 % vs Retail - Cyclical Industry
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.
* 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.
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 (RENT) has a Gross Margin % of 73.75% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Rent the Runway and its competitors. This is near median its historical median of 69.55. Over the past decade, Rent the Runway's Gross Margin % has ranged from 54.03 to 73.81. According to the industry distribution chart, Rent the Runway ranks #52 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 4.7%.
Is Rent the Runway's Gross Margin % too high?
Rent the Runway's current Gross Margin % of 73.75% is near median its 10-year median of 69.55. Over the past 10 years, this metric has ranged from a low of 54.03 to a high of 73.81. The Retail - Cyclical industry median Gross Margin % is 36.23. Rent the Runway's value of 73.75% is 103.6% above this industry median. Based on the distribution chart, Rent the Runway ranks #52 out of 1117 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Rent the Runway has a GF Score™ of 51/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Rent the Runway's Gross Margin % compare to TLYS and DLTH?
According to the Retail - Cyclical industry distribution chart, Rent the Runway ranks #52 out of 1117 companies for Gross Margin %. This places Rent the Runway in the top 5% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 36.23. Rent the Runway's value of 73.75% is 103.6% above this benchmark. Historically, Rent the Runway's own Gross Margin % has ranged from 54.03 to 73.81 over the past decade. While the company's 10-year median is 69.55 vs. the industry median of 36.23, Rent the Runway has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rent the Runway's current Gross Margin % of 73.75% is 103.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Rent the Runway and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rent the Runway's current Gross Margin % is 73.75%, which is near median its own 10-year median of 69.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rent the Runway stock overvalued right now?
Based on GuruFocus' analysis, Rent the Runway (RENT) is currently considered Modestly Undervalued. The stock's GF Value™ is $3.69, compared to a current price of $3.10 — trading 16% below its estimated fair value. The current Gross Margin % is 73.75%, which is near median its 10-year median of 69.55 and 103.6% above the Retail - Cyclical industry median of 36.23. Rent the Runway's overall GF Score™ is 51/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Rent the Runway (RENT), the current Gross Margin % is 73.75% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rent the Runway (RENT) Overvalued in 2026?
Based on GuruFocus' analysis, Rent the Runway stock appears to be undervalued.
The current stock price of $3.10 is trading 16% below its estimated GF Value™ of $3.69.
GuruFocus considers Rent the Runway to be Modestly Undervalued.
Key valuation signals for RENT:
Gross Margin %: 73.75% (near median its 10-year median of 69.55)
GF Value™: $3.69 vs. price of $3.10 (16% below fair value)
Industry Position: 103.6% above the Retail - Cyclical median (#52 of 1117)
No single metric tells the full story. See the RENT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rent the Runway Inc is an e-commerce platform that allows users to rent, subscribe to, or buy designer apparel and accessories. The company gives customers access to its unlimited closet through its subscription offering (Subscription) or the ability to rent a-la-carte through its reserve offering (Reserve). The company also gives its subscribers and customers the ability to buy its products through its Resale offering. The Closet in the Cloud offers a wide assortment of items for every occasion, from evening wear and accessories to ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, and ski wear.
51GF Score
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