Stitch Fix Q1 revenue falls over 12% (#1685694)

Stitch Fix announced on Tuesday revenue fell 12.6% to $318.8 million in the first quarter, as active customer numbers continue to fall at the subscription-based apparel firm.

The San Francisco-based company said active clients fell 3% to 2.4 million, quarter-over-quarter, and decreased 18.6% to 555,000 year-over-year for the three months ending November 2. Still, net revenue per active client rose 4.9% year-over-year to $531. 

For the quarter, the U.S. company reported a net loss from continuing operations of $6.3 million and diluted loss per share of $0.05.

“Our fiscal year is off to a strong start. We exceeded our expectations in the first quarter on the top and bottom lines,” said Matt Baer, chief executive officer, Stitch Fix. 

“Our clients are responding to the newness we have brought to our assortment as well as the improvements we’ve made to our client experience. This progress is a testament to the Stitch Fix team’s ongoing execution of our transformation strategy, and we continue to expect to return to revenue growth by the end of FY26.”

Earlier this year, the company ceased operations of its UK business, adding it met the accounting requirements for reporting the UK business as a discontinued operation.

Looking ahead, for the second quarter of fiscal 2025, ending February 1, 2025, the company expects net revenue between $290 million and $300 million, down 12% to 9% year-over-year.

Meanwhile, Stitch Fix said it expects fiscal 2025 revenues from continuing operations to be between $1.14 billion and $1.18 billion, down 13% to 10% for the year.