Replenishing your wardrobe often can become costly, especially if you have your eye on high-end designer brands. Co-founder and CEO of Rent the Runway Jennifer Hyman aims to solve that problem for you through her business.
Rent the Runway's success has helped Hyman grow her estimated net worth to $300 million, reports CelebrityNetWorth.com. Who is the CEO, and what's her stake in the company?
CEO and Co-Founder of Rent the Runway
Net worth: $300 million (estimated)
Jennifer Hyman is a self-made millionaire who currently serves as the CEO and chair of the board at Rent the Runway. She started Rent the Runway in college with her friend, Jennifer Reiss. The company rents out high-end clothing, allowing you to get the best of both worlds—designer clothes and affordable prices. Rent the Runway reportedly generates $233.59 million in annual sales.
BA from Harvard University
MBA from Harvard Business School
Spouse: Benjamin Stauffer
Hyman’s background—who is she, and where did she study?
Hyman is 41 years old and was born in New York. She attended Harvard University, where she earned a bachelor's degree in social studies. She went on to earn a master's degree in business administration from Harvard Business School. Hyman is married to Benjamin Stauffer and has two children.
How did Rent the Runway start?
Hyman and her friend Jennifer (Jenny) Fleiss founded Rent the Runway in 2009. The idea for the company started after Hyman learned that her sister had purchased a $2,000 designer dress she couldn’t afford for a wedding. It was that moment that inspired her to ask, “Wouldn’t it be so much smarter if we could rent designer items rather than purchase them?”
And that's just what they did. Rent the Runway started as a pop-up shop on Harvard’s campus and later turned into a standalone store in New York City. The company primarily operates online today using a subscription-based method. From wedding dresses to designer sweaters, all can be rented from Rent the Runway.
What's Hyman’s stake in Rent the Runway?
Hyman reportedly owns 5.1 percent of the company, which is worth about $48.9 million. She's the current CEO of Rent the Runway and chair of the board. Over the course of her career as CEO, Hyman received several honors and awards, including 50 Most Powerful Working Moms, Women Changing the World in 2020, and Fortune’s 40 Under 40.
In 2018, Hyman was named a board member at The Estée Lauder Companies and presently holds this position. Hyman also joined the supervisory board of Zalando SE in 2020 and still serves on it. Reiss left Rent the Runway in 2017, though she still holds less than a one-percent stake in the company.
What is Rent the Runway valued at?
In 2019, Rent the Runway valued itself at $1 billion after a “new round of financing,” reaching unicorn status. After the COVID-19 pandemic struck, the retail company, like many others, watched its customer base drop along with its profits.
In summer 2021, however, “sales began looking up as revenue increased 39 percent for the three months ended July 31 compared to the previous quarter ended April 31,” reports Forbes. The company reportedly generates $233.59 million in annual sales and earns most of its profits through subscriptions.
The company currently offers members three plans to choose from:
You pay $99 for the first two months and $135 thereafter.
You’ll receive up to eight items per month.
You pay $129 for the first two months and $174 thereafter.
You’ll receive up to 12 items per month.
You pay $149 for the first two months and $199 thereafter.
You’ll receive up to 16 items per month.