Rent the Runway vs Fossil Group

Rent the Runway vs Fossil Group: this page compares business models, financial performance, and market context for the two companies in a neutral, accessible way. Educational content, not financial advice.

Rent the Runway vs Fossil Group: this page compares business models, financial performance, and market context for the two companies in a neutral, accessible way. Educational content, not financial ad...

Comparison Snapshot

Key Financial Metrics

RENT

Metric

FOSL

$243.42M

Market Cap

$192.88M

N/A

Potential Profit

25.63%

Hold

Analyst Rating

Buy

Investment Analysis

Rent the Runway

RENT

Pros

Subscriber growth accelerated to 13.4% year-on-year in Q2 2025, indicating improved customer demand and successful turnaround initiatives.
The company reported its first quarterly revenue growth in 2025, with a 2.5% year-on-year increase, reversing prior declines.
Rent the Runway maintains strong gross profit margins above 70%, reflecting efficient cost management in its core rental operations.

Considerations

Profitability measures declined in Q2 2025 despite revenue growth, with net losses still substantial and free cash flow breakeven not yet achieved.
The company faces a significant debt burden and upcoming cash interest payments, increasing financial risk and limiting flexibility.
Analyst price targets remain highly speculative, with wide forecast ranges and a market capitalisation suggesting ongoing investor uncertainty.

Fossil Group

FOSL

Pros

Fossil Group has a diversified product portfolio spanning watches, accessories, and licensed brands, reducing reliance on any single category.
The company maintains a relatively strong balance sheet with positive cash flow and manageable debt levels compared to sector peers.
Recent strategic partnerships and licensing agreements have helped stabilise revenue and support brand relevance in a competitive market.

Considerations

Fossil Group's revenue has declined over the past year, reflecting ongoing challenges in the traditional watch segment and shifting consumer preferences.
The company is exposed to cyclical demand and discretionary spending trends, making it vulnerable to broader economic downturns.
Margins have been under pressure due to increased competition and the need for continuous investment in digital transformation and marketing.

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About The Companies

Rent the Runway (RENT)

Rent the Runway, Inc (RENT) operates an online and physical rental service for apparel and accessories, offering subscriptions and one-off hires for women’s fashion. The company combines inventory management, logistics and data-driven personalisation to extend the life of clothing and appeal to cost-conscious or sustainability-minded consumers. With a market capitalisation reported around $19 million, the stock is currently small and likely to be volatile; investors should note this can reflect financial stress, heavy competition from traditional retailers and resale platforms, and execution risks tied to inventory and logistics costs. Opportunities include growing consumer interest in experiential spending and circular fashion, plus potential margin improvements from scale. Risks are material: performance can fluctuate, returns are uncertain and the firm has capital and profitability challenges typical of early-stage or restructuring firms. This summary is educational only and not personalised investment advice; consider your own circumstances and consult a professional if needed.

Fossil Group (FOSL)

Fossil Group, Inc. (FOSL) is a US-based designer, marketer and distributor of watches, wearable technology, handbags and jewellery. The company operates its owned brands and licenced partnerships with global fashion labels, selling through wholesale, retail and e-commerce channels. Fossil has been shifting toward smartwatches and connected wearables while managing inventory and cost pressures faced by fashion retail. With a market capitalisation of roughly $134 million, it is a relatively small-cap company, which can mean higher volatility and liquidity considerations. Key things for investors to note are brand relevance, licensing agreements, supply-chain dynamics and the competitive wearable-tech landscape. This summary is for educational purposes only and is not personalised financial advice. Past performance is not a guide to the future; values can fall as well as rise. If uncertain, consider seeking guidance from a regulated financial adviser to assess whether the stock suits your circumstances.

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Which Baskets Do They Appear In?

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Comparison Snapshot