Stitch Fix Inc · Q1 2025 earnings

Briefing

Stitch Fix's first quarter of fiscal year 2025 financial results were announced, exceeding expectations on both top and bottom lines.

Stitch Fix reported a decrease in net revenue by 12.6% year-over-year, totaling $318.8 million. The company's active clients decreased by 3.0% quarter-over-quarter and 18.6% year-over-year. Despite these declines, net revenue per active client increased by 4.9% year-over-year, and the gross margin improved by 180 basis points. The company had a net loss of $6.3 million, with a diluted loss per share of $0.05. Adjusted EBITDA stood at $13.5 million, and free cash flow was $9.9 million. The company ended the quarter with $253.3 million in cash, cash equivalents, and investments, with no debt.

• Net revenue was $318.8 million, a 12.6% decrease year-over-year.
• Active clients totaled 2,434,000, representing a 3.0% decrease quarter-over-quarter and an 18.6% decrease year-over-year.
• Net revenue per active client was $531, a 4.9% increase year-over-year.
• Net loss amounted to $6.3 million, with a diluted loss per share of $0.05.

Headline financials

Revenue & EPS history

For the second quarter of fiscal year 2025, Stitch Fix anticipates net revenue between $290 million and $300 million, representing a year-over-year decrease of 12% to 9%. Adjusted EBITDA is projected to be between $8 million and $13 million, with a margin of 2.8% to 4.3%. For the full fiscal year 2025, net revenue is expected to range from $1.14 billion to $1.18 billion, a year-over-year decrease of 15% to 12% (or 13% to 10% adjusted to a 52-week period). Adjusted EBITDA for the full year is anticipated to be between $25 million and $36 million, with a margin of 2.2% to 3.1%. The company expects the second quarter and full fiscal year 2025 gross margin to be approximately 44% to 45%, and full fiscal year 2025 advertising expense as a percentage of revenue to be at the high end of an 8% to 9% range.