Strong Revenue Growth
Stitch Fix reported a 4.4% adjusted revenue growth for Q4, with revenue of $311.2 million, marking the second consecutive quarter of revenue growth and exceeding guidance.
Market Share Gains
The company gained market share in the U.S. apparel market, as noted by Circana data, driven by improvements in client experience and assortment.
Growth in Average Order Value
Average order value (AOV) grew 12% year-over-year, marking the eighth consecutive quarter of AOV growth, driven by higher items per Fix and an increase in fixed average unit retail (AUR) by 7.6% year-over-year.
Expansion in Men's and Women's Lines
Both the women's and men's lines of business accelerated revenue growth in Q4, driven by expansion into non-apparel categories and the infusion of established brands.
Positive Adjusted EBITDA
Adjusted EBITDA for Q4 was $8.7 million or 2.8% of revenue, ahead of guidance, contributing to a full-year adjusted EBITDA of $49.1 million, up 170 basis points compared to FY '24.
Introduction of AI Innovations
Stitch Fix is leveraging generative AI to enhance personalization, including the rollout of an AI style assistant and style visualization feature called Vision.
Cost Structure Improvements
The company reduced overall SG&A spend by $124 million in FY '25 and achieved the highest full-year contribution margin in the last decade.