The news: Clothing rental service Nuuly generated $568 million in revenues for the 12 months ended January 31, parent Urban Outfitters said, far exceeding the $500 million target executives set last February.

• That represented a 49% increase in net sales compared with the prior year.
• Average monthly subscribers rose around 40% YoY to 420,000.

The trend: Rental services like Nuuly, Rent the Runway, and Stitch Fix are gaining popularity.

• 17% of US adults polled from December 2025 to January 2026 said they’d used a clothing rental service, up from 6% in 2022, according to CivicScience.
• 10% say they intend to sign up for such a service, from 4% in 2022.
• 22% of consumers say they would use the services to obtain outfits for special occasions, trips, or vacations, followed by 20% to save money, and 14% for work-related attire.

However, Nuuly has significant advantages over its competitors. As of June, it had over twice the number of active subscribers as Rent the Runway, the second-largest player in apparel subscription, according to a Wells Fargo analyst note. Its association with Urban Outfitters offers numerous benefits, including:

• The ability to acquire roughly half of its inventory at cost from Urban Outfitters brands, which include Free People and Anthropologie.
• Reverse logistics capabilities, including the ability for subscribers to return monthly orders to Urban Outfitters stores.
• Access to a broader audience, many of whom are new to clothing rental.

Implications for brands: Nuuly’s growing customer base shows that more shoppers are turning to clothing rental as a way to stay trendy without breaking the bank. While the number of US adults who subscribe to or are interested in rental services remains small, Nuuly’s popularity among younger consumers makes it a valuable channel for brand and product discovery.

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