Nuuly has surged ahead in the US apparel rental market, boasting more than double the active subscribers of rival Rent the Runway, according to new analysis from Wells Fargo.
The Urban Outfitters-owned brand now counts around 380,000 subscribers, with a large share of under-30 users new to rental entirely.
Wells Fargo analysts highlighted Nuuly’s strong retention metrics, with 90% of customers staying on in the first year and about 40% retained through years three to five, as a key factor in its growth.
Access to inventory from sister brands Urban Outfitters, Anthropologie, and Free People gives Nuuly a competitive edge, with those labels comprising roughly 45% of its current stock.
Net sales for the brand reached $124.4 million in the latest quarter, up nearly 60% year over year, and added almost 400 basis points to Urban Outfitters’ top-line growth.
After turning a profit last fiscal year, Nuuly is targeting $500 million in sales this year, a milestone President Dave Hayne described as “achievable.”
A new 600,000-square-foot fulfilment centre in Missouri is set to support further growth, with the capacity to triple subscriber numbers.
Meanwhile, Rent the Runway saw its subscriber base shrink 2% in Q1, with revenue falling 7.2% year over year to $69.6 million.
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