Rent the Runway adds Chanel, Balenciaga and Bottega Veneta bags for top-tier subscribers

Rent the Runway is launching a collection of luxury handbags from labels such as Chanel, Balenciaga and Bottega Veneta, The Business of Fashion reported. It is the first major initiative under chief executive Paige Thomas, who joined in July after founder Jennifer Hyman left the company earlier this year.

How it works

• The bags are available first to subscribers of the top monthly plan, which costs $164 for two shipments of five items a month.
• Renters get one bag per month and can keep it for the full 30 days.
• The company buys the bags directly from brands or from “respected third party sellers”; the assortment also includes Fendi, Dior, Chloé, Miu Miu and current “it” bags such as the Balenciaga Rodeo and Alaïa Teckel.

“The business environment is more competitive than when we disrupted 17 years ago, and it’s critical to differentiate yourself,” Thomas told BoF.

Why it matters

Rent the Runway shares trade below $3, against an IPO price of more than $300 in 2021. Revenue has grown about 20% year on year for three quarters, reaching a record $97.7 million last quarter, but the company has not been consistently profitable. Active subscribers fell 3.6% to 140,826, and rival Nuuly, owned by Urban Outfitters, has nearly four times as many subscribers. Bag rental is also an established niche, with players such as Bag, Borrow or Steal and Vivrelle.