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Oct 28, 2023

Stitch Fix Q1 2024 Earnings Report

Announced financial results for the first quarter of fiscal year 2024.

Key Takeaways

Stitch Fix reported net revenue of $364.8 million, a decrease of 18% year-over-year, but at the higher end of their guidance range. They also generated positive free cash flow for the fourth quarter in a row, delivering $16.9 million.

Net revenue from continuing operations was $364.8 million, an 18% year-over-year decrease.

Net loss from continuing operations was $26.2 million, with a diluted loss per share of $0.22.

Adjusted EBITDA from continuing operations was $8.6 million, exceeding the high end of guidance.

Active clients from continuing operations totaled 2,989,000, a 4% quarter-over-quarter decrease.

Total Revenue
$365M
Previous year: $456M
-19.9%
EPS
-$0.3
Previous year: -$0.5
-40.0%
Active Clients
2.99M
Previous year: 3.71M
-19.4%
Net Revenue per Active Client
$506
Previous year: $525
-3.6%
Gross Profit
$159M
Previous year: $187M
-15.1%
Cash and Equivalents
$257M
Previous year: $113M
+126.6%
Free Cash Flow
$16.9M
Previous year: -$15.9M
-206.1%
Total Assets
$624M
Previous year: $745M
-16.2%

Stitch Fix

Stitch Fix

Forward Guidance

The financial outlook for the second quarter of fiscal year 2024 ending January 27, 2024 includes net revenue from continuing operations between $325 million and $335 million, representing a 19% - 16% YoY decline. Adjusted EBITDA from continuing operations is expected to be between $2 million and $7 million, with a 1%-2% margin.

Challenges Ahead

  • Net Revenue from Continuing Operations $325 million - $335 million (19)% - (16)% YoY decline
  • Adjusted EBITDA from Continuing Operations $2 million - $7 million 1% - 2% margin
  • Fiscal Year 2024 Net Revenue from Continuing Operations $1.30 billion - $1.37 billion (18)% - (14)% YoY
  • Adjusted EBITDA from Continuing Operations $10 million - $30 million 1% - 2% margin