According to its latest numbers, Stitch Fix’s planned comeback is shaping up to be more of a marathon than a sprint.
For its first fiscal quarter of 2024, reported Tuesday, the personalized online styling platform posted a loss of $35.5 million, with a seemingly greater loss per share of 30 cents than the 25 cents that analysts anticipated. However, the latter is tied to continuing operations only, so factoring in changes like the shutdown of the U.K. business, the adjusted loss came to 22 cents, beating the projection and edging out Wall Street’s 23-cent expectation as well.
Quarterly revenue from continuing operations beat the forecasts by $3 million, with Stitch Fix’s $364.8 million topping analysts’ predictions of $361.8 million. While the figure represents a 18 percent year-over-year drop, the company pointed out that it lands at the higher end of the range from its first-quarter guidance. Active clients were 2,989,000, a quarter-over-quarter decrease of 4 percent and a year-over-year fall of 15 percent.
As for the current second quarter ending in January, executives expect revenue of between $325 million and $335 million, and earnings in the range of $2 million to $7 million. The company expects full-year 2024 revenue to come in between $1.3 billion to $1.37 billion, with earnings of $10 million to $30 million.
Despite mixed results, Matt Baer, the company’s recently minted chief executive officer, tried to strike an optimistic note in a prepared statement: “The original vision of Stitch Fix is as powerful, relevant and compelling today as it was when the company was launched, and I am confident that our best days are ahead of us,” he said, taking the latest numbers as a sign of encouragement.
He said he is pleased with the progress the business has made, and pledged to continue focusing “on optimizing the business in the short term while working to reimagine our business and operating model with the goal of delivering sustainable and profitable growth in the future.”