Stitch Fix ( (SFIX) ) has released its Q4 earnings. Here is a breakdown of the information Stitch Fix presented to its investors.
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Stitch Fix, Inc. is a leading online personal styling service that combines expert stylists with advanced AI to provide personalized clothing recommendations, catering to individual tastes and needs in the fashion industry.
In its latest earnings report, Stitch Fix announced a mixed financial performance for the fourth quarter and full fiscal year 2025. The company experienced a slight decline in net revenue but saw an increase in revenue per active client and gross margin expansion for the year.
Key financial highlights include a 2.6% year-over-year decrease in fourth-quarter net revenue, adjusted to a 4.4% increase when accounting for an extra week in the previous fiscal year. The company reported a net loss of $8.6 million for the quarter, while net revenue per active client rose to $549, a 3.0% increase year-over-year. Despite a decrease in active clients, Stitch Fix maintained a gross margin of 43.6% for the quarter and 44.4% for the full year, reflecting improved cost management.
Looking ahead, Stitch Fix remains optimistic about its growth prospects, driven by its transformation strategy and focus on AI and stylist-driven personalization. The company aims to continue capturing market share in the U.S. apparel market and expects to achieve positive free cash flow for fiscal year 2026.
Stitch Fix’s management is focused on leveraging AI technology and enhancing the client experience to fuel growth, with a financial outlook projecting modest revenue growth and continued cost management in the upcoming fiscal year.