Rent the Runway has appointed Paige Thomas as CEO and president, effective immediately, as the fashion rental company looks to build on record quarterly revenue.
Thomas will also join the company’s board, succeeding Teri Bariquit, who has served as interim CEO and president since May. Bariquit will become the non-executive chair of the board and work with Thomas during the leadership transition.
Dhiren Fonseca will step down as executive chairman and remain on the board.
Thomas joined Rent the Runway as chief commercial officer in June. She brings more than 30 years of retail experience, having previously served as chief merchant and product innovation officer at Signet Jewelers and president and CEO of Saks Off 5th. She also spent more than a decade at Nordstrom, including five years leading Nordstrom Rack.
The leadership change comes as Rent the Runway reported a 20.8 per cent increase in second-quarter revenue to $97.7 million, an all-time high for the company, for the fiscal quarter ended July 31.
Net loss narrowed to $12.9 million from $26.4 million a year earlier, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increased to $12.6 million from $3.6 million.
The company’s subscriber base increased by 0.5 per cent to 186,019 over the year.
Rent the Runway said its focus this year remains on improving customers’ discovery experience.
During the quarter, it completed the rollout of AI-powered outfit generation while concentrating resources on its core rental and selling businesses and stepping back from several smaller initiatives and pilots.
“Second quarter results were strong with revenues that reflect an all-time high for the company and profit margin expansion that is driven by our operating discipline and highlights how we intend to run the business,” said Dave Loretta, interim CFO and treasurer.
“We remain committed to strengthening our liquidity position with the improved free cash flow in the first half and additional funding support from our investor group.”
Looking ahead, Rent the Runway reaffirmed its fiscal outlook this year for double-digit revenue growth compared with last year’s and an adjusted EBITDA margin of between 4 per cent and 7 per cent.
Thomas said the company would continue to focus on its core fashion rental proposition and customer experience.
“I’m focused on listening to our customer and making every decision through her lens, doubling down on fashion and what makes this fashion service platform unique, while executing with operational excellence,” she added.
“This is not a new direction; it’s an acceleration of the strong foundation the team has built. The path is clear, and I’ve never been more excited to lead the team forward.”
