Stitch Fix, Inc. announced its financial results for the third quarter of fiscal year 2025, ended May 3, 2025, reporting a significant milestone with its overall return to year-over-year revenue growth. This marks the first time the company has achieved positive top-line growth in 12 consecutive quarters, exceeding both its own and analyst expectations. The company reported a net loss of 6 cents per share, beating the analyst consensus estimate of an 11-cent loss.
Quarterly revenue reached $325.02 million, surpassing the $314.44 million consensus estimate and representing a 0.7% increase year-over-year. Average Order Value (AOV) continued its growth trajectory, increasing for the seventh consecutive quarter and improving 10% sequentially. While the active client base still saw a decline, the quarter-over-quarter decrease narrowed to 0.8% from 2.6% in the prior quarter, indicating a positive trend in client retention efforts.
Stitch Fix raised its full fiscal year 2025 revenue guidance to a range of $1.25 billion to $1.26 billion, up from its previous forecast. The company also provided an updated outlook for the fourth quarter of fiscal 2025, expecting revenue between $298 million and $303 million, which is above analyst estimates. Management expressed confidence in its strategy, stating that the company is now in the 'growth phase of our transformation' and expects to be free cash flow positive for the full year.
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