News Flash

US firm Stitch Fix posts net revenue of $394.9 mn in Q3 FY23

12 Jun '23

2 min read

Pic: Stitch Fix

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Stitch Fix reported a 20 per cent decrease in Q3 FY23 net revenue at $394.9 million and an 11 per cent drop in active clients to 3.476 million.
The company's net revenue per active client also fell 9 per cent to $502.
The company reported a $21.8 million net loss. Stitch Fix expects net revenue to further decline 22-24 per cent in the fourth quarter of FY23.

Stitch Fix, Inc, a leading online personal stylist firm, has reported a 20 per cent year-over-year (YoY) decrease in net revenue for the third quarter (Q3) of fiscal 2023 (FY23), which amounted to $394.9 million. The results were accompanied by a decrease in active clients, dropping 11 per cent YoY to total 3,476,000.

Additionally, the net revenue per active client (RPAC) declined by 9 per cent to $502. Alongside these setbacks, Stitch Fix saw a net loss of $21.8 million and reported a diluted loss per share of $0.19. However, the company's Adjusted EBITDA remained positive at $10.1 million for the quarter, the company said in a press release.

“We continue to focus on delivering profitability and preserving cash flow, and I’m proud of how far we’ve come. This quarter we delivered adjusted EBITDA of $10.1 million, exceeding our guidance range and significantly expanding our free cash flow. We continue to focus on ways to drive efficiencies across our business, while at the same time invest in the core capabilities that have set Stitch Fix apart from the beginning—personalisation powered by our industry-leading data science and AI. Looking forward, we’re confident that we have the right strategy in place to return us to profitable growth while realizing our mission to help our clients look and feel their best,” said Katrina Lake, interim CEO, Stitch Fix.

Looking ahead, Stitch Fix has issued a financial forecast for Q4 FY23, ending on July 29, 2023. The company anticipates net revenue to be within the range of $365 million to $375 million, representing a 22-24 per cent YoY decline. The adjusted EBITDA for the forthcoming quarter is estimated to land anywhere from zero to $10 million, representing a margin of 0-3 per cent.

Fibre2Fashion News Desk (DP)

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