Rent the Runway (RENT) Sees Rising Workwear Demand, Trims Discounts

Rent the Runway's store in San Francisco.

Rent the Runway Inc. shares fell sharply in after-hours trading after the company said it’s curbing the discounts it had been using to draw in subscribers.

The promotions have been offered during the initial months of new fashion-rental subscription plans. Reducing them will attract subscribers who will stay on even after the discounts end, Chief Executive Officer Jennifer Hyman said in an interview Wednesday. But the change also caused the company to forecast revenue growth for the current quarter that’s lower than analysts’ estimates.