Thanks to a steady stream of new subscribers and a large jump in revenue, Urban Outfitters’ clothing rental service Nuuly has gained its first profit, writes Gabrielle Fonrouge for NBC 10 Philadelphia.

The brand saw $65.5 million in revenue and an operating profit of $300,000 during its fiscal third quarter, which ended in October.

In the previous year, Nuuly posted $35.3 million in revenue and an operating loss of $3 million.

This marks the first time Nuuly has earned money since its 2019 launch. 

“We set out with a plan to build a business that we thought could be quite big and we set out with a plan to build a business that had the potential to be profitable, And that’s what we’ve been able to accomplish,” said David Hayne, Nuuly’s president and Urban Outfitters’ chief technology officer. 

Its 198,000 subscriber count during this quarter eclipsed rival Rent the Runway’s 137,566 as of July 31.

This profit has helped Nuuly earn a reputation as one of the go-to clothing rental services among younger consumers.

The clothing rental market is still a budding industry as brands look to convince consumers to rent instead of buy clothing. 

Read more about Nuuly’s rise as a clothing rental service in NBC 10 Philadelphia. 

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