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Jul 31, 2021

Stitch Fix Q4 2021 Earnings Report

Delivered strong revenue growth and increased active clients.

Key Takeaways

Stitch Fix reported Q4 2021 financial results, achieving $571 million in net revenue, a 29% year-over-year increase. The company served almost 4.2 million clients and launched Stitch Fix Freestyle.

Net revenue increased by 29% year-over-year, reaching $571.2 million.

Active clients increased by 18% year-over-year, totaling 4,165,000.

Net revenue per active client increased by 4% year-over-year, reaching $505.

Net income was $21.5 million, with diluted earnings per share of $0.19.

Total Revenue
$571M
Previous year: $443M
+28.8%
EPS
$0.19
Previous year: -$0.44
-143.2%
Active Clients
4.17M
Previous year: 3.5M
+19.0%
Net Revenue per Active Client
$505
Previous year: $486
+3.9%
Gross Profit
$265M
Previous year: $199M
+33.3%
Cash and Equivalents
$130M
Previous year: $143M
-9.5%
Free Cash Flow
$7.82M
Previous year: $51.8M
-84.9%
Total Assets
$819M
Previous year: $769M
+6.5%

Stitch Fix

Stitch Fix

Forward Guidance

Stitch Fix provided financial outlook for the first quarter and full fiscal year 2022.

Positive Outlook

  • Q1 2022 Net Revenue: $560 million - $575 million
  • Q1 2022 YoY growth: 14.0% - 17.0%
  • Q1 2022 Adjusted EBITDA: $15 million - $20 million
  • Q1 2022 Adjusted EBITDA margin: 2.7% - 3.5%
  • FY 2022 Net Revenue growth: > 15.0%

Challenges Ahead

  • FY 2022 Adjusted EBITDA margin: > 2.0%
  • Uncertainties related to the ongoing COVID-19 pandemic
  • Risks related to supply chain and sourcing of materials
  • Risks related to international operations
  • Ability to generate sufficient net revenue to offset costs