Shares of Rent the Runway popped on news of the company's third-quarter earnings results.
SEANA SMITH: Let's start with my pick, and that's Rent the Runway. The stock soaring this afternoon. Look at that, up just around 66%, its biggest daily gain that we have seen since March revenue. And margins beating the Street's estimates in the third quarter, while active subscribers returning to quarter over quarter growth. KeyBank saying that the company posted, quote, "solid top line trends," while Wells Fargo saying that third quarter results were a, quote, "welcome sigh of relief, following last quarter's volatility."
Well, Rent the Runway also raised its full year revenue expectations, a huge driver in the gains that we are seeing today. Over the last three months-- you're looking at that on your screen-- you're looking at pretty significant losses, off nearly 50%. Year to date, Josh, those losses are looking even worse. So a step in the right direction for Rent the Runway. Their CEO, Jennifer Hyman, saying that their turnaround strategy has largely been complete. So I think the next few quarters are really going to be in focus.
JOSH SCHAFER: Well, she also highlighted inflation being a reason for that, right, saying they think consumers are sort of-- they'd rather rent the runway than buy the runway right now. And they wanted to weigh that expense a little bit. And that's something that, I think, we're going to continue to see moving forward. So does that continue to help Rent the Runway? It's certainly going to be something interesting to watch.