Stitch Fix posts Q3 revenue drop of 20 percent

For the third quarter, Stitch Fix, Inc. net revenue of 394.9 million dollars, decreased 20 percent year over year.

The company’s active clients of 3,476,000, a decrease of 431,000 or 11 percent, while net revenue per active client (RPAC) of 502 dollars, decreased 9 percent.

The company reported net loss of 21.8 million dollars, diluted loss per share of 19 cents and adjusted EBITDA of 10.1 million dollars.

Commenting on the third quarter trading, Stitch Fix interim CEO Katrina Lake said: “We continue to focus on delivering profitability and preserving cash flow, and I’m proud of how far we’ve come. This quarter we delivered adjusted EBITDA of 10.1 million dollars, exceeding our guidance range and significantly expanding our free cash flow.”

For the fourth quarter of fiscal 2023, the company expects to report net revenues in the range of 365 million dollars to 375 million dollars, down between 22 to 24 percent and adjusted EBITDA in the range of 0 to 10 million dollars with margin between 0 to 3 percent