Nuuly Tops $500 Million in Revenue as Petite Rentals Rise

Nuuly, the seven-year-old rental arm of Urban Outfitters’ parent URBN, crossed a major threshold this fiscal year: revenue topped $500 million for the year ended January 31, 2026, and the platform reported roughly 420,000 active subscribers as of February. That subscriber base is presented alongside a claim that Nuuly accounts for about 64 percent of the U.S. apparel rental market, marking the service’s rapid climb from just over 380,000 active subscribers in May 2025.

The growth curve has been steep and measurable. Urban Outfitters’ latest quarter showed Nuuly net sales of $124.4 million, an almost 60 percent year-over-year increase, while average active subscribers rose 53 percent and brand revenue jumped 60 percent, adding roughly 400 basis points to URBN’s top line. Nuuly also turned a profit in its last fiscal year, a financial pivot that underpins management’s more aggressive targets.

Subscriber makeup and retention statistics help explain how Nuuly is scaling. Company research cited nearly 70 percent of Nuuly subscribers as having never rented clothing before, and analysts noted that most under-30 customers this year were new to rental. Wells Fargo analysts reported Nuuly retention at 90 percent in year one and around 40 percent in years three to five, figures that have been framed as among the highest in the sector and a reason the platform can sustain rapid subscriber growth.

Operational advantages are concrete: Wells Fargo analysts estimate roughly 45 percent of Nuuly’s inventory comes at cost from URBN sister brands Urban Outfitters, Anthropologie and Free People. That inventory mix, combined with subscriber momentum, is central to the argument that Nuuly has “quickly become an industry leader,” a characterization from Wells Fargo that also highlights Nuuly’s subscriber count being more than double that of Rent the Runway.

Incumbents are responding. Rent the Runway reported nearly 150,000 active subscribers and $87 million in revenue last quarter, up 15 percent year-over-year, and CEO Jennifer Hyman said updating the company’s add-on proration “led to a 17% year-over-year increase in the subscription add-on rate in the last quarter of 2025.” Pricing remains a variable: industry comparisons have placed Nuuly’s monthly subscription around $98, versus $94 to $144 for Rent the Runway.

Investors and management are bullish. Urban Outfitters COO Frank Conforti told investors that “the performance at Nuuly over the past year has fortified our confidence that our business model is strong, and the rental market opportunity is very large,” adding, “We are thrilled that Nuuly now appears to be leading the industry with an opportunity to continue to see significant growth. Based on our current plans, we believe Nuuly could deliver a healthy double-digit revenue and profit growth in the second quarter.” Nuuly leadership has pushed the ambition further: company executives expect Nuuly to become “a billion-dollar brand in the next few years,” and Dave Hayne called reaching $500 million in sales “this year” “an achievable goal.”

For shoppers and size-specific communities tracking rental options, Nuuly’s scale—measured in half a billion dollars of annual revenue, hundreds of thousands of subscribers, and a significant inventory pipeline tied to URBN labels—signals an inflection point for access and selection. With startups like Vivrelle and Pickle raising tens of millions, the category is expanding; Nuuly’s profitability and stated roadmap make it the platform to watch as rental moves from niche habit to mainstream wardrobe strategy.