Stitch Fix Reports 12.4% Revenue Drop

By Bobby Samwell • Wednesday, September 25 06:10 • Permanent Link

Stitch Fix, Inc. (NASDAQ: SFIX) has released its financial results for the fourth quarter and full fiscal year 2024, which ended on August 3, 2024. The company reported a net revenue of $319.6 million for the fourth quarter, marking a decrease of 12.4% year-over-year. When adjusted for the impact of the extra week in Q4’24, the decrease was 18.3% year-over-year. The gross margin for the quarter stood at 44.6%, reflecting an increase of 50 basis points year-over-year, attributed to improved transportation leverage.

The net loss for the fourth quarter was $35.7 million, with a diluted loss per share of $0.29. Adjusted EBITDA was reported at $9.5 million, demonstrating continued cost management discipline. Free cash flow for the quarter was $4.5 million, and the company ended the quarter with $247.0 million of cash, cash equivalents, and investments, and no debt.

For the full fiscal year 2024, Stitch Fix reported a net revenue of $1.34 billion, representing a decrease of 16.0% year-over-year. When adjusted for the impact of the extra week in 2024, the decrease was 17.4% year-over-year. The active clients decreased by 125,000 quarter-over-quarter and by 613,000 year-over-year, amounting to 2,508,000 active clients. The net revenue per active client ("RPAC") was reported at $533, reflecting an increase of 4.5% year-over-year. The company reported a gross margin of 44.3% for the full year.

The net loss for the full fiscal year 2024 was $118.9 million, with a diluted loss per share of $0.99. The adjusted EBITDA for the full year was $29.3 million, and free cash flow amounted to $14.2 million.

Looking ahead, the financial outlook for the first quarter of fiscal 2025 ending November 2, 2024, includes a projected net revenue of $303 million * $310 million, reflecting a decrease of 17% * 15% year-over-year. The adjusted EBITDA for Q1 2025 is expected to be $5 million * $9 million, representing a 1.7% * 2.9% margin.

For the fiscal year 2025, the company anticipates a net revenue of $1.11 billion * $1.16 billion, reflecting a decrease of 17% * 13% year-over-year. When adjusted to a 52-week period, the decrease is projected to be 16% * 12% year-over-year. The adjusted EBITDA for fiscal year 2025 is expected to be $14 million * $28 million, with a margin of 1.3% * 2.4%.

Stitch Fix has not reconciled its adjusted EBITDA outlook to GAAP net income (loss) due to the uncertainty and potential variability of certain costs and expenses. Today the company's shares have moved -1.1% to a price of $3.75. For more information, read the company's full 8-K submission here.

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