Stitch Fix Q1 revenues decline by 18 percent

For the first quarter, Stitch Fix, Inc. reported net revenue of 364.8 million dollars, a decrease of 18 percent, while net loss reached 26.2 million dollars and diluted loss per share was 22 cents.

The company’s adjusted EBITDA was 8.6 million dollars, which Stitch Fix said, exceeded the high end of its first quarter 2024 guidance.

During the first quarter, Stitch Fix ceased operations of its UK business.

“This quarter's results are encouraging. We continue to focus on optimising the business in the short term while working to reimagine our business and operating model with the goal of delivering sustainable and profitable growth in the future,” said Matt Baer, the company’s chief executive officer.

The company’s active clients of 2,989,000, decreased 132,000 or 4 percent, quarter-over-quarter and decreased 515,000, or 15 percent, year-over-year. Net revenue per active client was 506 dollars, a decrease of 6 percent.

On December 4, 2023, the company entered into a credit agreement with Citibank, which provided for a 50 million dollars revolving credit facility maturing on December 4, 2026.

For the second quarter, the company expects revenues to reach 325 million dollars to 335 million dollars, down in the range of 16 to 19 percent and adjusted EBITDA in the range of 2 million dollars to 7 million dollars with margin between 1 to 2 percent.

For the fiscal year 2024, Stitch Fix expects revenues to range between 1.30 billion to 1.37 billion dollars, down between 14 to 18 percent and adjusted EBITDA between 10 million dollars to 30 million dollars with 1 to 2 percent margin.