Stitch Fix, a pioneer in personalized styling and shopping experiences, reported its financial performance for the three and nine months ended May 3, 2025, in its latest 10-Q filing.
The company's net revenue for the three months ended May 3, 2025, was $325.0 million, representing a 0.7% year-over-year increase. However, for the nine months ended May 3, 2025, net revenue decreased by 6.1% to $955.9 million compared to the same period in the previous year. Stitch Fix attributed this decline to challenges in acquiring and retaining active clients, resulting in a year-over-year decline of 10.6% in active clients, with approximately 2,353,000 active clients as of May 3, 2025, compared to 2,633,000 active clients as of April 27, 2024.
The company reported a net loss from continuing operations of $7.4 million for the three months ended May 3, 2025, and $20.3 million for the nine months ended May 3, 2025, compared to a net loss from continuing operations of $22.0 million and $83.1 million for the same periods in the previous year, respectively.
Stitch Fix also provided insights into its restructuring activities, recording $1.2 million of additional restructuring charges during the six months ended February 1, 2025, as part of the 2022 Restructuring Plan. The company noted that it does not expect any additional cash restructuring charges related to the 2022 Restructuring Plan as of May 3, 2025.
In evaluating its performance, Stitch Fix highlighted key financial and operating metrics, including non-GAAP financial measures such as Adjusted EBITDA and Free Cash Flow. Adjusted EBITDA for the three months ended May 3, 2025, was $11.0 million, compared to $6.7 million for the same period in the previous year. Free Cash Flow for the nine months ended May 3, 2025, was $6.5 million, down from $9.7 million for the same period in the previous year.
Stitch Fix emphasized the importance of active clients and net revenue per active client as key indicators of its business health. The company reported that net revenue per active client was $542 as of May 3, 2025, representing a 3.2% year-over-year increase.
The 10-Q filing also outlined factors affecting Stitch Fix's performance, including the macroeconomic environment, inventory management, and client acquisition and engagement.
As Stitch Fix navigates these challenges, the company remains focused on retaining current clients, improving the conversion of new clients, and enhancing the overall client experience for new and existing clients.
Today the company's shares have moved -10.54% to a price of $4.285. For the full picture, make sure to review Stitch Fix's 10-Q report.
