How Nuuly plans to retain customer subscriptions, data after its first growth spurt

 In the era of so-called subscription fatigue, subscription clothing rental service Nuuly has managed to not only increase its number of subscribers, but also turn a profit while its competitors are scrambling for profitability.

Nuuly, which is owned by Urban Outfitters, hit its first growth spurt in Q3 of last year. Nuuly's net sales came in about $65.5 million last October, up from $35.2 million in that same quarter the year prior, marking a nearly 86% increase, according to the company's earnings report. The clothing rental company also amassed nearly 200,000 subscribers as of last December, according to a spokesperson.

On this episode of the Digiday Podcast, we caught up with Kim Gallagher, executive director of marketing at Nuuly to talk about the company's growth plans through 2024 and beyond.

“This is not the sexy answer, but we feel like we are in this unique spot of we’ve had a lot of growth, we’ve just achieved our first profitable quarter and we still feel like we have a lot of work to do to make our service as good as it can possibly be,” Gallagher said on a recent episode of the Digiday Podcast. “It’s been a couple of years of chasing growth, and we’re like, ‘Yeah, you know what? Let’s just focus on the core for a minute.”