Stitch Fix ( (SFIX) ) has released its Q3 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 deliver personalized clothing recommendations, making it easier for clients to find styles they love. The company operates in the retail sector, focusing on apparel and accessories.
In its third quarter of fiscal year 2025, Stitch Fix reported a slight year-over-year increase in net revenue, marking a return to growth. The company highlighted its strategic focus on providing a client-centric shopping experience as a key driver of its performance.
Key financial metrics for the quarter include a net revenue of $325 million, a 0.7% increase from the previous year, despite a decrease in active clients by 10.6% year-over-year. The net revenue per active client rose by 3.2%, reaching $542. However, the company reported a net loss of $7.4 million, with a gross margin decline to 44.2% due to lower product margins. Stitch Fix maintained a strong cash position with $242.1 million in cash and no debt, and achieved an adjusted EBITDA of $11 million, reflecting disciplined cost management.
Looking ahead, Stitch Fix projects a slight decline in net revenue for the fourth quarter of fiscal 2025, with expectations of $298 million to $303 million. The company aims to maintain a gross margin in the 44% to 45% range and anticipates being free cash flow positive for the full year. Management remains focused on enhancing client engagement and operational efficiency to drive sustainable growth.