Torsten Asmus/iStock via Getty Images Commenting on Rent the Runway’s ( RENT ) performance at the end of the company’s third quarter, I indicated that the firm was trading at a huge discount, which, despite profitability and structural issues in the business, nonetheless merited a Buy. In this update, I consider the strategic direction that the company has taken while making notable changes in key...
Torsten Asmus/iStock via Getty Images Commenting on Rent the Runway’s ( RENT ) performance at the end of the company’s third quarter, I indicated that the firm was trading at a huge discount, which, despite profitability and structural issues in the business, nonetheless merited a Buy. In this update, I consider the strategic direction that the company has taken while making notable changes in key personnel at the close of a financial quarter. The stock has a 52-week range of $3.35 to $10.13 , with the current price at the lower end. Over the past three months, it has shed 29.87% of its value, a period during which the S&P 500 has gained 10.41%. My valuation analysis, however, leads me to take a more bullish approach wherein I maintain my Buy thesis. Building on a growing model Rent the Runway, hereafter RENT, is built on an innovative and disruptive model within the fashion industry, serving women via the provision of fashion “ through the Closet in the Cloud .” Three pathways to monetizing the offering are via wholesale, share, by RTR and Exclusive Designs. These are detailed by the company as follows: “Wholesale items are acquired directly from brand partners, typically at a discount to Wholesale price. Share by RTR items are acquired directly from brand partners on consignment, at zero or a fraction of the Wholesale cost with performance-based revenue share payments to our brand partners over time. Exclusive Designs items are designed using our data in collaboration with our brand partners. These units are manufactured through third-party partners with an upfront fee and, in most cases, minimal revenue share payments to our brand partners over time.” While the latest results suggest that there is a healthy market for the business, the company history suggests slow uptake from the market, an indication of its infancy. The latest subscriber numbers suggest some growth, notably with total subscribers increasing by 7.6%. Market related data April 2026 April 2025 % c...
Richard Drury/DigitalVision via Getty Images Commentary as of 03/31/26 The fund posted returns of -4.78% (Institutional shares) and -4.82% (Investor A shares, without sales charge) for the first quarter of 2026. At a sector level, positioning in the financials sector detracted, as payment assets remained under pressure and stocks in the capital markets industry lagged due to concerns about artific...
Richard Drury/DigitalVision via Getty Images Commentary as of 03/31/26 The fund posted returns of -4.78% (Institutional shares) and -4.82% (Investor A shares, without sales charge) for the first quarter of 2026. At a sector level, positioning in the financials sector detracted, as payment assets remained under pressure and stocks in the capital markets industry lagged due to concerns about artificial intelligence (AI) disruption. Not owning energy stocks also weighed on relative returns. We aim for our concentrated portfolio to remain diversified, and we have found high-conviction ideas across multiple areas of the economy, including AI-related industrials businesses and large-scale data centers, payments, aerospace & defense, and embedded software. In addition, we have found idiosyncratic opportunities in consumer brands. Contributors Detractors The top contributors included Vertiv, ASML, Masimo, and Howmet Aerospace. Vertiv and ASML benefited from continued investment in AI infrastructure, with the latter reporting record fourth-quarter revenues and order backlog, driven by demand for leading-edge extreme ultraviolet tools. Masimo contributed following Danaher’s agreed all-cash acquisition, which represented a 40% premium to the closing share price before the deal was announced. Howmet performed well amid strong commercial aerospace demand, with its first-quarter revenues and earnings per share about 2% and 8% ahead of consensus expectations, respectively. Investor caution about the implications of AI weighed on certain data- and information-driven business models. RELX was affected by the continued debate about the long-term impact of AI on parts of the analytics landscape. Adyen struggled after it reported fourth-quarter revenues and 2026 guidance that were below consensus forecasts. Robinhood Markets’ fourth-quarter revenues fell short of expectations, which reflected softer cryptocurrency activity, though strong performance in other divisions and positive comm...
United States carrier Delta Air Lines has resumed direct flights to the city after the pandemic, launching a daily service to Los Angeles amid surging fuel prices. Jeff Moomaw, the airline’s vice-president for Asia-Pacific, said on Monday that it would take some time to increase services connecting the city to more destinations as the carrier remained focused on current demand. “Our focus right no...
United States carrier Delta Air Lines has resumed direct flights to the city after the pandemic, launching a daily service to Los Angeles amid surging fuel prices. Jeff Moomaw, the airline’s vice-president for Asia-Pacific, said on Monday that it would take some time to increase services connecting the city to more destinations as the carrier remained focused on current demand. “Our focus right now is making sure that this flight is a success,” Moomaw said. “As it grows over time, and we focus...