After a phase marked by significant leadership transformation and improved financial metrics, former Nordstrom executive Paige Thomas has been named chief executive officer of Rent the Runway.
On Monday, Rent the Runway announced that its Chief Commercial Officer Paige Thomas would transition to the role of CEO. This update came alongside the company’s second-quarter earnings report. Thomas, who started working at the fashion rental platform in June, joins a leadership team with several Nordstrom veterans, including outgoing interim CEO Teri Bariquit.
Extensive Retail Background Bolsters Thomas’s Role
Thomas steps into the CEO role with a wealth of experience from high-level positions in retail. For ten years, she worked at Nordstrom, including five years at Nordstrom Rack. She served as chief merchant and product innovation officer at Signet Jewelers, and most prominently as president and CEO of Saks Off 5TH.
While leading Saks Off 5TH, Thomas fostered a collaboration with Rent the Runway. Four years ago, she established a partnership enabling customers to buy pre-owned designer pieces via the Saks Off 5TH website. That online collaboration ended after Saks Off 5TH’s parent, Saks Global, went through bankruptcy and dissolved its e-commerce business earlier this year.
The concept was echoed at Nordstrom Rack in 2020, when the retailer started selling pre-worn Rent the Runway apparel in its stores.
Management Shifts and Board Changes
Thomas replaces Teri Bariquit, formerly Nordstrom’s chief merchant, who became interim CEO at Rent the Runway after the departure of company co-founder Jennifer Hyman in May. Bariquit will assume the position of non-executive board chair, which she takes over from Dhiren Fonseca, who remains a director on the board.
Financial Momentum and Strategic Focus
Thomas’s elevation to CEO was reported the same day as the release of Rent the Runway’s second-quarter financials. The company’s revenue for the quarter climbed almost 21% year over year, coming in at $97.7 million. Active subscribers declined by nearly 4%, to 140,826. Despite the subscriber dip, profitability improved, evidenced by a gross margin that rose 610 basis points to 36.1%. Net losses were cut by more than half, falling to $12.9 million.
Reflecting on recent progress, Bariquit highlighted Rent the Runway’s strengthened rental business and ongoing work on a “2027 plan centered on transforming the business.” Thomas affirmed that this leadership update is designed to accelerate current strategies and reinforce the established direction, indicating confidence in Rent the Runway’s current foundation.
With these leadership and financial changes, Rent the Runway positions itself for continued expansion and transformation, building on experienced retail guidance to drive its next phase of growth.