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Apr 30, 2022

Stitch Fix Q3 2022 Earnings Report

Announced third quarter fiscal year 2022 financial results

Key Takeaways

Stitch Fix reported a net revenue of $492.9 million, a decrease of 8% year over year. Active clients also decreased by 5% year over year, totaling 3,907,000. The company is implementing cost-saving measures, including a workforce reduction, to position itself for profitable growth.

Net revenue was $492.9 million, an 8% decrease year over year.

Active clients totaled 3,907,000, a 5% decrease year over year.

Net revenue per active client (RPAC) was $553, a 15% increase year over year.

Net loss was $78.0 million, resulting in a diluted loss per share of $0.72.

Total Revenue
$493M
Previous year: $536M
-8.0%
EPS
-$0.72
Previous year: -$0.18
+300.0%
Active Clients
3.91M
Previous year: 4.1M
-4.7%
Net Revenue per Active Client
$553
Previous year: $481
+15.0%
Gross Profit
$210M
Previous year: $246M
-14.7%
Cash and Equivalents
$138M
Previous year: $125M
+10.4%
Free Cash Flow
-$38.3M
Previous year: -$50.5M
-24.3%
Total Assets
$864M
Previous year: $834M
+3.6%

Stitch Fix

Stitch Fix

Forward Guidance

For the fourth quarter of fiscal 2022, Stitch Fix anticipates net revenue between $485 million and $495 million, representing a 15% to 13% year-over-year decline. Adjusted EBITDA is projected to be between negative $30 million and negative $25 million, which excludes restructuring and other one-time charges totaling $15 million to $20 million.

Challenges Ahead

  • Net Revenue: $485 million - $495 million, (15)% - (13)% YoY decline
  • Adjusted EBITDA: $(30) million - $(25) million, (6)% - (5)% margin