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Jul 29, 2023

Stitch Fix Q4 2023 Earnings Report

Stitch Fix's Q4 2023 financial results were announced, showing a decrease in net revenue but exceeding expectations with adjusted EBITDA.

Key Takeaways

Stitch Fix reported a net revenue of $375.8 million for Q4 2023, a 22% decrease year-over-year. The company's adjusted EBITDA exceeded guidance, reaching $10.4 million, and it generated positive free cash flow for the third consecutive quarter, ending the year with $257.6 million in cash, cash equivalents, and investments. The company also announced its decision to exit the UK market.

Net revenue for Q4 2023 was $375.8 million, a 22% decrease year-over-year.

Net loss was $28.7 million, with a diluted loss per share of $0.24.

Adjusted EBITDA reached $10.4 million, exceeding the guidance range.

Positive free cash flow was generated for the third consecutive quarter, with $17.7 million in Q4 and $38.8 million for the full fiscal year.

Total Revenue
$376M
Previous year: $482M
-22.0%
EPS
-$0.24
Previous year: -$0.65
-63.1%
Active Clients
3.3M
Previous year: 3.8M
-13.1%
Gross Profit
$163M
Previous year: $183M
-11.3%
Cash and Equivalents
$239M
Previous year: $131M
+82.9%
Free Cash Flow
$17.7M
Previous year: -$46.7M
-137.9%
Total Assets
$614M
Previous year: $765M
-19.6%

Stitch Fix

Stitch Fix

Forward Guidance

For the first quarter of fiscal year 2024, Stitch Fix anticipates net revenue for its US business to be between $355 million and $365 million, representing a 20% to 18% year-over-year decline. Adjusted EBITDA for the US business is projected to be between $2 million and $7 million, with a margin of 1% to 2%. For the full fiscal year 2024, the company expects net revenue for the US business to be between $1.30 billion and $1.37 billion, reflecting an 18% to 14% year-over-year decrease, or a 20% to 15% decrease adjusted to a 52-week period. Adjusted EBITDA for the US business is expected to be between $5 million and $30 million, with a margin of 0% to 2%.