US' Stitch Fix reports decline in revenue for fiscal 2024

Stitch Fix, the online personal styling service, has generated $1.34 billion in revenue in full fiscal 2024 (FY24), ended August 3, down 16 per cent from the previous fiscal. The company’s active client base shrank by 613,000 to 2.5 million, representing a 19.6 per cent drop year-over-year. Although client numbers fell, Stitch Fix reported a modest gain in revenue per active client, rising 4.5 per cent year-over-year to $533.

Stitch Fix also reported a net loss of $118.9 million for FY24, with a diluted loss per share of $0.99. The company's adjusted EBITDA for the full fiscal was $29.3 million, the company said in a press release.

The company's decision to cease UK operations earlier in the year significantly impacted its overall financial performance. As part of its cost-cutting efforts, Stitch Fix focused on streamlining its business, resulting in free cash flow of $14.2 million for the full fiscal and maintaining $247 million in cash with no debt.

For the fourth quarter (Q4), Stitch Fix has posted net revenue of $319.6 million, reflecting a 12.4 per cent decrease year-over-year, which would have been an 18.3 per cent drop if adjusted for the extra week included in fiscal 2024. The company recorded a net loss of $35.7 million, translating to a diluted loss per share of $0.29.

Despite the revenue downturn, Stitch Fix managed to improve its gross margin to 44.6 per cent, attributing the increase to more efficient transportation logistics. The company’s adjusted EBITDA for the quarter came in at $9.5 million, showcasing ongoing cost control efforts, the release added.

Looking ahead, Stitch Fix has issued a cautious financial outlook for fiscal 2025, forecasting first-quarter revenue between $303 million and $310 million, down 15 per cent to 17 per cent from the same period last year. For the full fiscal 2025, Stitch Fix anticipates revenue in the range of $1.11 billion to $1.16 billion, which would represent a 13 per cent to 17 per cent decrease year-over-year. EBITDA for FY25 is expected to land between $14 million and $28 million.

Matt Baer, chief executive officer, Stitch Fix said, “We are executing our transformation strategy with discipline and, during the fourth quarter, we delivered results at the high end of our guidance on both the top and bottom line. I am proud of the Stitch Fix team’s efforts this past fiscal year and encouraged by the progress we have already made to strengthen the foundation of our business and reimagine our client experience. While there is a lot of work still to do, I am confident we are on the right path to continue to improve the trajectory of our business which includes returning to revenue growth by the end of FY26.”

Fibre2Fashion News Desk (HU)