Rent the Runway is the latest retail company to raise its prices while citing inflationary pressures and tariffs.
On Tuesday, the clothing rental company emailed subscribers notifying them of a price increase to their subscription of approximately $2 per item, effective August 1. For example, those currently paying $119 to rent five styles per month will pay $129, marking an 8.4% increase; while those paying $144 to rent 10 styles per month will pay $164, an increase of 13.9%. Renters with 20-item plans will see a 17% monthly price increase, from $235 to $265.
“Over the last several years, we’ve watched steep price increases unfurl across the board in fashion due to inflationary pressures and tariffs,” the letter from Team Rent the Runway stated. “We … believe that this change allows us to keep delivering the most exceptional experience possible while remaining the best deal in fashion.”
It continued, “We know that quality fashion is becoming increasingly expensive, and being able to rent fashion you love for your everyday life is more important than ever.”
As noted in the letter, Rent the Runway last raised its prices in 2022, with its most popular, eight-item monthly plan, at the time, increasing by nearly $10 to $144, marking a boost of about 7.5%. A 16-item plan jumped from $199 to $235. In March 2023, the company updated its membership tiers, with the $144-per-month plan newly offering 10 styles, versus eight, but all delivered in one shipment. Prior, renters received two monthly shipments of four styles each.
Tuesday’s email provided members with links to a landing page where they could cancel or pause their membership, with the caveat that canceling would mean they would lose their RTR Rewards membership status. Rent the Runway introduced RTR Rewards on June 30, with membership tiers based on the duration of one’s membership. Perks include surprise gifts, early access to sales and exclusive access to community events, for example.
In its first-quarter 2025 earnings, announced June 5, Rent the Runway reported a record number of active subscribers for the quarter ending on April 30, at 147,000, marking a 1% increase year over year. Total subscribers reached 182,000, per the company, which reinstated its projection of double-digit year-over-year growth in active subscribers for the year. Its revenue decreased 7% year over year, to $70 million, while its net loss increased to $26 million, up from $22 million in the first quarter of 2024.
In early March, Rent the Runway announced its biggest inventory investment to date, with plans to double its new inventory in 2025, introduce 90 new brands, increase inventory from its top 25 brands by 3-4x and launch 15 exclusive designer collaborations. At the same time, it revealed plans to roll out new features, including back-in-stock notifications for out-of-stock items. Tuesday’s email stated that the company is committed to its inventory plan. Rent the Runway did not respond to a request for comment.
In April 2023, Rent the Runway competitor Nuuly, owned by URBN, increased the cost of its standard monthly plan — offering six items shipped once monthly — by $10, from $88 per month to $98. In February 2025, URBN reported that Nuuly ended its fiscal fourth quarter of 2025, ending January 31, with 300,000 average active subscribers, adding 20,000 new subscribers during the quarter. Its fiscal 2025 marked the company’s first full year of profitability. Nuuly launched in 2019.
As budget-conscious Americans tighten their purse strings in an uncertain economy, some are canceling their subscriptions to cut costs. In June, CNET revealed results of a subscription survey showing that 61% of subscribers are rethinking their paid subscriptions due to the state of the economy, and 26% have already canceled a paid subscription.
In a late April interview for the Glossy Podcast, when asked whether she expected tariffs to affect Rent the Runway’s membership pricing, co-founder and CEO Jennifer Hyman told Glossy she was “taking it day by day” and had planned to sit down with 20 brand partners the following week to discuss how they’d “handle this together.”
“No one knows what’s going on right now, and no one has a plan yet,” she said. “Over 90% of fashion production happens in China, and it’s not feasible or possible for that production to just move overnight to other places. … It’s affecting everyone.”
