Stitch Fix Revenue Decline

In the most recent quarter, Stitch Fix experienced a significant decrease in revenue as it lost over half a million active clients in the past year. The online personal styling services company reported a loss of $35.5 million, or 30 cents per share, for the fiscal second quarter ended Jan. 27. This is compared to a loss of $65.6 million, or 58 cents per share, for the same period the year before.

Decline in Revenue and Active Clients

Revenue took an 18% hit, dropping to $330.4 million in the latest quarter. The revenue per active client decreased to $515 from the previous year but showed an improvement from $506 in the third quarter. Stitch Fix currently has 2.8 million active clients, marking a 6% decrease from the prior quarter and a 17% decline from the same period last year.

Revised Revenue Outlook

Stitch Fix adjusted its revenue outlook for fiscal 2024 to a range of $1.29 billion to $1.32 billion, down from the previous guidance of $1.3 billion to $1.37 billion. Analysts had initially expected revenue of $1.35 billion for the year.

Strategies for Profitability

In an effort to drive profitability, Stitch Fix stylists are focusing on selecting more outfits from private brands, which are generally more cost-effective. These changes are part of ongoing initiatives to improve the company's financial performance.

Overall, Stitch Fix is navigating challenges with a proactive approach, aiming to overcome setbacks and position itself for future growth in the competitive online personal styling services market.