Stitch Fix, Inc. announced its financial results for the first quarter of fiscal year 2025, ended November 2, 2024, reporting that it exceeded expectations on both the top and bottom lines. The company posted a net loss of 5 cents per share, outperforming the analyst estimate of a 14-cent loss per share. Revenue for the quarter reached $318.8 million, surpassing the consensus estimate of $315.3 million, despite a 13% year-over-year decrease.
Adjusted EBITDA for the first quarter was $13.5 million, significantly ahead of the consensus estimate of $7.4 million, demonstrating improved operational efficiency. While active clients declined by 3.0% sequentially, this represented an improvement of 170 basis points from the 4.7% decline reported in the previous quarter, indicating a deceleration in client losses. Revenue per active client grew to $542, an increase of 3% from the year-ago period.
Looking ahead, Stitch Fix raised its full fiscal year 2025 revenue guidance to a range of $1.14 billion to $1.18 billion, up from its previous forecast of $1.11 billion to $1.16 billion. The company expects gross margin for the second quarter and full fiscal year 2025 to be approximately 44% to 45%. Management reiterated its expectation to return to overall revenue growth by the end of fiscal year 2026, signaling confidence in its ongoing transformation strategy.
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