Rent the Runway on Wednesday forecast full-year revenue below Wall Street estimates, sending the apparel rental firm's shares down 4% in extended trading.

The downbeat outlook comes at a time when fashion retailers are expected to benefit from a post-Covid recovery in demand for dress and formal attire, as the United States gears up for the most number of ceremonies since 1984 after the pandemic delayed weddings and other social events.

Rent the Runway expects full-year revenue between $295 million and $305 million, below estimates of $305.02 million, according to IBES data from Refinitiv.

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The company reported a 91% jump in revenue to $64.1 million for the fourth quarter, above estimates of $63.22 million.

Active subscribers for the company's fashion rental service rose over 110% to 115,240 in the quarter.

With Wednesday's after-hours decline, the stock is down more than 70% from its October initial public offering price.