Wed, Sep 25, 8:48 PM (86 days ago)
Stitch Fix, Inc. reported a significant decline in financial performance for fiscal year 2024, with net revenue of $1.3 billion, down 16% from the previous year, and a net loss from continuing operations of $118.9 million, improved from a loss of $150.3 million in fiscal 2023. Active clients decreased by 19.6% to approximately 2.5 million, attributed to challenges in client acquisition and retention. The company undertook restructuring efforts, resulting in cash restructuring charges of $10.1 million and non-cash impairments of $19.3 million. Operating expenses also fell by 12.7% to $725.5 million, while gross profit decreased by 12.4% to $592 million, leading to a gross margin of 44.3%. The company’s strategic focus remains on enhancing client experience and optimizing inventory management. Future outlooks are cautious, with expectations of continued revenue challenges amid a competitive retail environment and macroeconomic pressures affecting consumer spending. The company maintains a robust liquidity position with $162.9 million in cash and equivalents and a $50 million credit facility. Risks include reliance on consumer discretionary spending, inventory management challenges, and potential impacts from economic downturns.