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Jan 28, 2023

Stitch Fix Q2 2023 Earnings Report

Stitch Fix's financial performance decreased year-over-year, but adjusted EBITDA was at the high end of guidance.

Key Takeaways

Stitch Fix reported a decrease in net revenue and active clients compared to the previous year. However, the company's adjusted EBITDA was $3.8 million, at the high end of their guidance range. They are refocusing on their styling-first model and aim to achieve profitability and preserve liquidity.

Net revenue was $412.1 million, a 20% decrease year-over-year.

Active clients totaled 3,574,000, an 11% decrease year-over-year.

Net revenue per active client was $516, a 6% decrease year-over-year.

The company's net loss was $65.6 million, with a diluted loss per share of $0.58.

Total Revenue
$412M
Previous year: $517M
-20.2%
EPS
-$0.28
Previous year: -$0.28
+0.0%
Active Clients
3.57M
Previous year: 4.02M
-11.1%
Net Revenue per Active Client
$516
Previous year: $549
-6.0%
Gross Profit
$169M
Previous year: $233M
-27.4%
Cash and Equivalents
$139M
Previous year: $194M
-28.3%
Free Cash Flow
$15.4M
Previous year: -$31.2M
-149.2%
Total Assets
$661M
Previous year: $898M
-26.5%

Stitch Fix

Stitch Fix

Forward Guidance

For Q3 2023, Stitch Fix expects net revenue between $385 million and $395 million, representing a 22% to 20% year-over-year decline. Adjusted EBITDA is projected to be between negative $5 million and positive $5 million. For the full fiscal year 2023, they anticipate net revenue between $1.625 billion and $1.645 billion, and adjusted EBITDA between breakeven and $10 million.