Nuuly Gives Urban Outfitters a Runway to Riches as It Outshines the Original

After pioneering the closet-in-the-cloud, Rent the RunwayRENT

is getting upstaged by a fresher fit. Backed by Urban OutfittersURBN

, Nuuly’s formula finally cracked the scale code thatRENT

still dreams about. It’s givingURBN

a makeover too, having nearly doubled the parent’s stock in one year.

• Nuuly’s subscribers rose 53% from last year to 380K, bringing a 60% lift in sales — also turning a profit in its previous fiscal year.
• In contrast,RENT
  ’s subscribers grew 23% to 147K+, but revenue fell 7.2% — failing to turn a consistent profit despite ongoing turnaround efforts.

Why it worked: Nuuly had the ultimate backstage pass — Urban Outfitters’ buying power, logistics, and a closet stocked with in-house brands that did the heavy lifting. Nearly half of Nuuly’s inventory comes from Urban affiliates, letting it dodge sourcing headaches and keep costs down. That head start helped Nuuly outpace Rent the Runway’s revenue, gaining popularity with monthly subscriptions that cost $31 less for more items. The designer collections may change, but being well-connected is always in fashion.