Stitch Fix losses widen on plunge in revenues, active users
Stitch Fix Inc. announced on Tuesday revenues for the first quarter plummeted by double digits, on the back of a decrease in active users during the three months ending October 29.
The San Francisco-based company recorded net revenues of $455.6 million, a decrease of 22% year-over-year. Active clients fell to 3.7 million, a decrease of 471,000 or 11% year-over-year.
Net revenue per active client was $525, approximately flat on last year.
As a result, the online personal stylist subscription service widened its losses, recording a net loss of $55.9 million and diluted loss per share of $0.50, compared a loss of $1.8 million and diluted loss per share of $0.02.
“This quarter we made meaningful progress on our transformation journey despite a difficult macro environment," said Stitch Fix CEO, Elizabeth Spaulding.
"Through diligent cost savings and efficiencies we beat our adjusted EBITDA expectations for Q1 and have improved our adjusted EBITDA guidance for FY23. By enhancing our client experience, rightsizing our cost structure, evolving our marketing and deepening our differentiators of fit, discovery, and human relationships, we are positioning ourselves well to achieve profitability in the near term and a return to growth in the future.”
For the fiscal year ending July 29, Stitch Fix said it expects net revenue to be between $1.6 billion and $1.7 billion, and adjusted EBITDA to be between a loss of $10 million and gain of $10 million.
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