Stitch Fix, the online personal styling services company, has announced a reduction in its loss for the latest quarter, although it experienced a decline in revenue due to a decreasing active customer base.
For the fiscal fourth quarter ended July 29, Stitch Fix recorded a net loss of $28.7 million, or 24 cents a share. This compares to a loss of $96.3 million, or 89 cents a share, during the same period last year. Analysts had predicted a loss per share of 21 cents, according to FactSet.
While revenue fell by 22% to $375.8 million, it outperformed analysts' forecasts of $371.2 million. However, the company witnessed a decrease in its active client base, which dropped to 3.3 million from 3.4 million in the previous quarter and 3.8 million compared to a year ago.
Chief Executive Matt Baer remains optimistic about the company's prospects, stating, "Our current business results are not indicative of what I believe this company can deliver, and I am committed to realizing the full potential of Stitch Fix and driving long-term, profitable growth."