• Home
  • News
  • Business
  • Stitch Fix CFO steps down as revenues take substantial dip

Stitch Fix CFO steps down as revenues take substantial dip

By Rachel Douglass


Scroll down to read more


Stitch Fix insight report imagery. Image: Stitch Fix

Personal stylist platform Stitch Fix has reported its financial results for Q2 of fiscal year 2023, ended January 28, as it looked to continue on its strategy to improve profitability.

The company saw its net revenue decrease YoY by 20 percent to 412.1 million dollars. It also saw an 11 percent decline in its active clients, down by 445,000 to just over 3.5 million.

Meanwhile, its net revenue per active client also decreased to 516 dollars, falling six percent.

The company’s net loss was reported to be 65.6 million dollars, while it presented an adjusted EBITDA of 3.8 million dollars, which it noted came in at the high end of its guidance range.

Stitch Fix’s operating cash flow for the quarter was 21.1 million dollars and its free cash flow was positive 15.4 million dollars, marking its first quarter of positive free cash flow since Q1 of FY22.

As part of the report, it was also announced that chief financial officer Dan Jedda was to step down to “pursue another opportunity”. Jedda will be succeeded by David Aufgerhaar, who will become SVP of finance effective April 3.

Restructuring plan and cost reduction continues

Despite the rocky results, Stitch Fix’s interim CEO, Katrina Lake, was still looking ahead with positivity for the company’s profitability strategy and restructuring plan, which looks to meet a cost reduction target of 135 million dollars FY23.

Lake stated: “Looking forward, we will continue to invest in the advanced data science and machine learning capabilities combined with personalised styling expertise that have set us apart for more than a decade.

“This strategic re-focusing on our styling-first model will deliver clarity to the client experience and drive efficiency in our marketing spend.

“We’re proud to have helped millions of clients find clothes that make them feel their best, and we’re confident that this path will ensure that we’re attracting long-term clients to Stitch Fix and paving the way for a return to growth.”

For Q3, ending April 29, Stitch Fix said it expects net revenue to be between 1.625 billion and 1.645 billion dollars, with an adjusted EBITDA to sit between breakeven and 10 million dollars.

It noted that it would not be providing an outlook for GAAP net income due to the “uncertainty and potential variability” of other income and expenses.

Lake announced her return to the company in an interim capacity at the beginning of January after former CEO Elizabeth Spaulding stepped down from the position.

It came as Stitch Fix revealed it would be making additional job cuts on top of a series of slashes already made across the firm last year, with 20 percent of its salaried workforce to be affected by the cuts.

Stitch Fix