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Feb 01, 2025
Stitch Fix Q2 2025 Earnings Report
Stitch Fix reported a 5.5% decline in revenue for Q2 2025 but improved gross margin and client engagement.
Key Takeaways
Stitch Fix reported Q2 2025 revenue of $312.1 million, a 5.5% year-over-year decline, reflecting a decrease in active clients. Despite this, net revenue per active client grew by 4.3% to $537, driven by higher order values. Gross margin improved to 44.5%, and the company reported an adjusted EBITDA of $15.9 million. The net loss narrowed to $6.6 million compared to a $35.5 million loss in the prior year.
Revenue declined 5.5% year-over-year to $312.1 million.
Net loss improved to $6.6 million, compared to $35.5 million in Q2 2024.
Net revenue per active client increased 4.3% to $537.
Gross margin expanded to 44.5%, reflecting higher order values and improved product margins.
Forward Guidance
Stitch Fix expects continued revenue challenges in Q3 2025 but remains focused on client engagement and cost efficiency.
Positive Outlook
- Net revenue guidance of $311 million to $316 million for Q3 2025.
- Adjusted EBITDA expected between $7 million and $10 million for Q3 2025.
- Gross margin projected to remain stable at 44% to 45%.
- Continued investments in personalization and styling improvements.
- Cost management efforts driving EBITDA margin improvement.
Challenges Ahead
- Revenue expected to decline 3.6% to 2.1% year-over-year in Q3 2025.
- Declining active client base remains a concern for future growth.
- Macroeconomic conditions may impact consumer spending on discretionary items.
- High advertising expenses expected to remain at the upper end of 8% to 9% of revenue.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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