Rent the Runway, Inc. RENT

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
28/100
Developing

Ranked against 33 peers in Apparel Retail

About Rent the Runway, Inc.

Rent the Runway, Inc. operates shared designer closet in the United States. The company provides evening wear and accessories, ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, and ski wear under subscription, rental, and resale offering. It also engages in the software development and support activities. Rent the Runway, Inc. was incorporated in 2009 and is … Full RENT analysis →

Key strengths

  • Operating Leverage in Effect Operating leverage is evident (score 0.94), with margins expanding over time.

Key risks

  • ROIC Below WACC or Peers ROIC at 13.8th percentile suggests inefficient capital deployment.
  • Elevated Debt Risk Debt serviceability is weak (score 0.19), raising refinancing risk.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Weak
21
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Cost Advantage

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Signals, strengths and risks for Customer Stickiness

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Resilience

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Signals, strengths and risks for Scale & Market Position

Where RENT ranks in Apparel Retail

Rent the Runway, Inc. ranks #28 of 34 scored companies in Apparel Retail by moat score — the top 82%. The widest moat in the group is lululemon athletica inc. (LULU) at 83/100.

# Company Moat score Rating
24 Citi Trends, Inc. CTRN 36/100 Developing
25 Zumiez Inc. ZUMZ 35/100 Developing
26 Cato Corporation (The) CATO 34/100 Developing
27 Digital Brands Group, Inc. Warrant DBGIW 32/100 Developing
28 Rent the Runway, Inc. RENT 28/100 Developing
29 a.k.a. Brands Holding Corp. AKA 26/100 Developing
30 Destination XL Group, Inc. DXLG 25/100 Weak
31 Tilly's, Inc. TLYS 21/100 Weak
32 Lulu's Fashion Lounge Holdings, LVLU 16/100 Weak

See every General Corporate company ranked by moat score →

How RENT scores on the Corporate Default defenses

Pricing Power

Score 21 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 32 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 25 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 7 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 19 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 70 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding RENT's moat

What is Rent the Runway, Inc.'s moat score?

Rent the Runway, Inc. (RENT) scores 28 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as developing. It ranks #28 of 34 scored companies in Apparel Retail, the top 82%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 33 companies in Apparel Retail. Its strongest defense is Scale & Market Position (70/100) and its weakest is Capital Efficiency (7/100).

How does Rent the Runway, Inc. compare with other Apparel Retail companies?

Rent the Runway, Inc. ranks #28 of 34 scored companies in Apparel Retail by moat score. The widest moat in Apparel Retail is lululemon athletica inc. (LULU) at 83/100. The companies ranked closest are Digital Brands Group, Inc. Warrant (DBGIW) at 32 just above it and a.k.a. Brands Holding Corp. (AKA) at 26 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 33 companies in Apparel Retail. The defenses are then weighted to produce the overall score out of 100.

Why is Rent the Runway, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Rent the Runway, Inc.?

The Corporate Default template measures 6 defenses, and RENT scores: Pricing Power (21), Cost Advantage (32), Customer Stickiness (25), Capital Efficiency (7), Resilience (19), Scale & Market Position (70). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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