Stitch Fix Q3 revenues decline 16 percent

Stitch Fix’s third quarter net revenue of 322.7 million dollars, decreased 16 percent year-over-year.

Gross margin for the quarter of 45.5 percent, increased 280 basis points, net loss was 22 million dollars and diluted loss per share was 18 cents. The company reported adjusted EBITDA of 6.7 million dollars.

Commenting on the third quarter trading, Matt Baer, chief executive officer, Stitch Fix said in a statement: “Our Q3 revenue and adjusted EBITDA exceeded our expectations, which we believe signals that our transformation efforts are beginning to work.”

For the fourth quarter, the company forecasts net revenue to be in the range of 312 million dollars to 322 million dollars, down between 14 to 12 percent or between 21 to 19 percent adjusted to a 13-week period. Adjusted EBITDA is expected to range between 5 million dollars to 10 million dollars with a margin of 1.6 percent to 3.1 percent

For the full year, revenues are expected to range between 1.33 billion dollars to 1.34 billion dollars, down 16 percent or between 18 to 17 percent adjusted to a 52-week period. Adjusted EBITDA is anticipated to be between 25 million dollars to 30 million dollars with margin between 1.9 percent to 2.2 percent.