The milestone marks the first time Nuuly has earned money since its launch in 2019, a goal for the company from the beginning as it looked to prove it could run a clothing rental business profitably.
While there is wide demand for clothing rental services, particularly among younger consumers, the logistics of rental have made it difficult to make money, threatening the platforms' viability.
watch nowNuuly and Rent's services are similar in that they both offer clothing for rent on a monthly basis for all sorts of occasions.
The clothing rental market is still a budding industry.
As brands look to convince consumers to rent instead of buy, offering a wide-ranging assortment has proven critical.
Persons:
Natalie Rice, Nuuly, David Hayne, we've, Gen Z, Jenn Hyman, Rent, Hayne, Urban's, Richard Hayne
Organizations:
Natalie Rice Urban Outfitters, CNBC