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Urban Outfitters' Clothing Rental Platform Turns Its First Annual Profit

Rental platform Nuuly reported an operating income of $13.3 million last year, a major benchmark for a concept that’s long been associated with rapid growth and steep losses.
Nuuly
Operating on a bigger scale has allowed Nuuly to address pain points common to the rental market. (Nuuly)

Nuuly

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Further Reading

The Retailer That Finally Got Rental Right

Urban Outfitters has spent over $100 million building Nuuly, a competitor to Rent the Runway that stocks more casual clothing. Four years in, the service is growing fast, and its owner says it will soon be profitable.

How Rent the Runway Came Back From the Brink

The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.

About the author
Yola Mzizi
Yola Mzizi

Yola Mzizi is the Editorial Associate at The Business of Fashion (BoF). She is based in New York and provides operational support to the New York team and writes features for BoF and The Business of Beauty.

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