US' Stitch Fix posts net revenue of $364.8 mn in Q1 FY24

The company experienced a net loss from continuing operations of $26.2 million, translating to a diluted loss per share from continuing operations of $0.22. Despite these losses, the company saw a positive turn in its adjusted EBITDA from continuing operations, which amounted to $8.6 million. This figure notably exceeded the high end of their Q1 FY24 guidance, a testament to the company's disciplined cost management strategies, Stitch Fix said in a press release.

The number of active clients from continuing operations stood at 2.98 million marking a quarter-over-quarter decrease of 132 thousand (4 per cent) and a significant YoY decline of 515 thousand (15 per cent). Additionally, the net revenue per active client from continuing operations decreased by 6 per cent YoY, settling at $506.

Looking ahead, Stitch Fix provided a financial outlook for the second quarter of fiscal 2024, which ends on January 27, 2024. The company anticipates net revenue from continuing operations to be in the range of $325 million to $335 million, representing a YoY decline of 19 per cent to 16 per cent. The adjusted EBITDA from continuing operations is projected to be between $2 million and $7 million, correlating to a margin of 1 per cent to 2 per cent.

“The original vision of Stitch Fix is as powerful, relevant and compelling today as it was when the company was launched, and I am confident that our best days are ahead of us,” said Matt Baer, chief executive officer. “This quarter's results are encouraging, and I'm pleased with the progress we have made to date. 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.”

Fibre2Fashion News Desk (DP)