Stitch Fix mulls UK market exit, lowers US distribution network

Personal styling platform Stitch Fix has said that it is looking to explore an exit from the UK market in fiscal year 2024 due to continued impact from the current macroeconomic environment.

The announcement came as the company reported a 20 percent drop in its net revenue for Q3 of FY23, down to 394.9 million dollars, which it noted still beat expectations.

The platform had been carrying out a strategic refocusing of its business over the period in a bid to improve efficiency and maintain profitability, ultimately concluding to lower its distribution centre network from five to three locations, with plans to close its Bethlehem and Dallas centres in the US.

The decision to potentially leave the UK market also stemmed from this review, which if carried out would end the company’s four year stint in the region.

In a regulatory filing, Stitch Fix said: “In addition to a strategic refocusing on our styling first business in the US, and despite ongoing efforts to control costs and increase efficiencies across the company, we have concluded the need to explore exiting the UK market in FY24.”

Stitch Fix’s UK platform currently offers clients pieces from over 100 third-party brands, including the likes of Hobbs, Dune, Seasalt, Ted Baker and Levi’s.