What: Fashion's resale and rental sectors show signs of growth heading into 2025, with The RealReal's stock surging 444%, Nuuly expanding its subscriber base, and P180 introducing innovative inventory management solutions through rental partnerships.

Why it is important: These developments highlight the increasing viability of circular fashion business models, as companies refine their strategies to balance consumer demand with operational efficiency.

The fashion resale and rental landscape demonstrates promising growth, with The RealReal's stock performance leading the industry with a 444% increase to $10.93. Under new CEO Rati Levesque, the company sees potential for $200 billion in untapped luxury resale value in the U.S. market alone. Meanwhile, Nuuly has emerged as the world's largest fashion rental company, with sales up 53.9% to $265.9 million and 297,000 active subscribers. The company's success in attracting first-time renters, with over two-thirds of new subscribers never having rented clothing before, suggests market expansion. P180 introduces a new approach by converting potential markdowns into rental inventory, recently demonstrated through investments in Elyse Walker and Altuzarra.

IADS Notes: While The RealReal's stock surged 444% and Nuuly grew to 297,000 subscribers, the broader market faces profitability challenges. P180's innovative approach to managing unsold inventory through rental represents a new model for addressing industry-wide challenges with inventory monetisation.

Resale and rental show signs of life headed into 2025