Stitch Fix, the online personal styling service, generated $1.34 billion in revenue in fiscal year 2024 (FY24), which ended August 3, down 16 percent from the previous fiscal year. The company’s active customer base declined by 613,000 to 2.5 million, representing a 19.6 percent year-over-year drop. Although customer numbers declined, Stitch Fix reported a modest increase in revenue per active customer, which rose 4.5 percent year-over-year to $533.
Stitch Fix also reported a net loss of $118.9 million for fiscal 2024, with a diluted loss per share of $0.99. The company's adjusted EBITDA for the full fiscal year was $29.3 million, the company said in a press release.
Stitch Fix, Inc. today reported fourth quarter and fiscal year 2024 results, showing revenue down 12.4 percent to $319.6 million and a net loss of $35.7 million in the fourth quarter. For fiscal year 2024, revenue was $1.34 billion with a net loss of $118.9 million. Active customers fell 19.6 percent to 2.5 million in fiscal year 2024. The company expects first quarter fiscal year 2025 revenue of $303 million to $310 million and is targeting revenue growth for fiscal year 2026.
The company’s decision to cease operations in the United Kingdom earlier this year significantly impacted its overall financial performance. As part of its cost-cutting efforts, Stitch Fix focused on optimizing its business, resulting in free cash flow of $14.2 million for the full fiscal year and maintaining $247 million in debt-free cash.
In the fourth quarter (Q4), Stitch Fix posted net revenue of $319.6 million, reflecting a 12.4 percent decrease year-over-year, which would have been a drop of 18.3 percent if adjusted for the additional week included in fiscal year 2024. The company posted a net loss of $35.7 million, translating to a diluted loss per share of $0.29.
Despite the revenue decline, Stitch Fix managed to improve its gross margin to 44.6 percent, which it attributed to more efficient transportation logistics. The company’s adjusted EBITDA for the quarter was $9.5 million, demonstrating continued cost control efforts, the statement added.
Looking ahead, Stitch Fix has issued a cautious financial outlook for fiscal 2025, forecasting first-quarter revenue of $303 million to $310 million, a decline of 15 to 17 percent from the same period last year. For the full fiscal 2025, Stitch Fix anticipates revenue of $1.11 billion to $1.16 billion, which would represent a decrease of 13 to 17 percent from the prior year. EBITDA for fiscal 25 is expected to be between $14 million and $28 million.
Matt Baer, CEO of Stitch Fix Stitch Fix CEO and CEO Mark Snyder said, “We are executing our transformation strategy with discipline, and during the fourth quarter, we delivered results that are at the high end of our guidance on both the top and bottom line. I am proud of the efforts of the Stitch Fix team over the past fiscal year and encouraged by the progress we have already made to strengthen the foundations of our business and reinvent our customer experience. While there is still much work to be done, I am confident that we are on the right path to continue improving the trajectory of our business, including returning to revenue growth by the end of fiscal year 2026.”
Fibre2Fashion (HU) Press Desk
