Rent the Runway shares sink as inflation-weary subscribers hit pause

FILE PHOTO: A Rent the Runway sign is pictured after their IPO on the NASDAQ exchange in Times Square in the Manhattan borough of New York City, New York, U.S., October 27, 2021. REUTERS/Carlo Allegri

(Reuters) - Shares of Rent the Runway plunged more than 22% before the bell on Tuesday, as more Americans paused their subscription to the clothing rental firm as they feel the pinch of red-hot inflation.

Soaring prices of gasoline and groceries have forced shoppers to curb spending on apparel and other discretionary items, bruising sales of clothing companies that were just beginning to recover from pandemic lows amid easing supply chain issues.