Stitch Fix, Inc. announced its financial results for the second quarter of fiscal year 2025, ended February 1, 2025, reporting another quarter that exceeded its expectations. The company posted a net loss of 5 cents per share, significantly better than the analyst consensus estimate of an 11-cent loss per share. Quarterly revenue came in at $312.1 million, surpassing the $284 million consensus estimate, despite a 5.5% year-over-year decrease.
A key highlight was the expansion of the gross margin, which increased by 110 basis points year-over-year to 44.5%, reflecting improved operational discipline. While the active client base continued to shrink, declining 15% year-over-year, the company's focus on client experience initiatives is aimed at slowing this trend and eventually returning to growth.
Stitch Fix raised its fiscal year 2025 revenue guidance to a range of $1.23 billion to $1.24 billion, an increase from its prior outlook. The company expects its third-quarter revenue to be approximately $313.5 million at the midpoint. Management emphasized that improvements to the client experience are resonating, and the company remains on track to achieve revenue growth by the end of fiscal year 2026.
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