Stitch Fix, Inc. has recently released its 10-K report, revealing a snapshot of its financial performance and operations. The company, headquartered in San Francisco, California, offers a wide range of apparel, shoes, and accessories for women's, petite, maternity, men's, plus, and kids through its website and mobile application. It provides curated shipments of items informed by algorithms and chosen by a Stitch Fix Stylist, as well as individualized outfit and item recommendations for direct purchase.
In fiscal 2025, Stitch Fix reported $1.3 billion in net revenue, representing a year-over-year decrease of 5.3%. The company saw a decline in active clients, with approximately 2,309,000 active clients as of August 2, 2025, down 7.9% from the previous fiscal year. The net loss from continuing operations for fiscal 2025 was $28.8 million, a significant improvement from the $118.9 million loss in fiscal 2024.
During fiscal 2025, the company recorded $1.2 million of additional restructuring charges as part of an expansion of the 2022 Restructuring Plan. Stitch Fix is evaluating fixed and variable operating costs, including optimizing its real estate footprint and marketing strategy, to position itself for profitability. The company also provided a breakdown of its non-GAAP financial measures, including Adjusted EBITDA and Free Cash Flow, to offer investors and analysts additional useful information for evaluating its performance.
Stitch Fix highlighted that the number of active clients and net revenue per active client are key indicators of its business health. Despite a decrease in active clients, net revenue per active client saw a year-over-year increase of 3.0%, reaching $549 as of August 2, 2025. The company also outlined factors impacting its performance, including the macroeconomic environment, inventory management, client acquisition and engagement, operations and infrastructure, and merchandise mix.
As Stitch Fix moves into fiscal 2026, it anticipates broader macroeconomic uncertainty and market conditions to negatively impact consumer discretionary spending. However, the company projects positive trends in average order values and the number of items kept per Fix to offset the negative impact of active client losses on net revenue. Stitch Fix remains focused on retaining current clients, attracting new clients, and enhancing the overall client experience to navigate current business challenges and the macroeconomic environment. As a result of these announcements, the company's shares have moved -18.71% on the market, and are now trading at a price of $4.585. Check out the company's full 10-K submission here.
