Stitch Fix stock slides on revenue decline in Q4

By:
on Sep 18, 2023
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  • Stitch Fix ended its fourth quarter with fewer active clients.
  • The Nasdaq-listed firm plans on pulling out of the U.K.
  • Stitch Fix stock is now down nearly 50% versus its YTD high.

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Stitch Fix Inc (NASDAQ: SFIX) is trending down in extended trading after reporting a year-on-year hit to its fourth-quarter revenue.

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Stitch Fix stock down on fewer active clients

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The online personal styling service attributed the weakness primarily to a decline in its number of active customers.

Stitch Fix ended its recent quarter with 3.3 million active clients – down 0.5 million versus last year and 0.1 million sequentially. According to Matt Baer – its Chief Executive who took the helm in June:

I have spent time assessing our business, operating model, and organisation … and identifying opportunities to both optimise in the short term and reimagine for the future.

Stitch Fix stock is now down close to 50% versus its year-to-date high.

Notable figures in Stitch Fix Q4 earnings

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  • Lost $28.7 million versus the year-ago $96.3 million
  • Per-share loss also narrowed from 89 cents to 24 cents
  • Revenue tanked 22% year-over-year to $375.8 million
  • Consensus was 21 cents loss on $371.2 million revenue
  • RPAC – net revenue per active client slipped 9.0% YoY

On Monday, Stitch Fix announced plans of pulling out of the United Kingdom as well. Its CEO Baer also said in a press release today:

Our current business results are not indicative of what I believe this company can deliver, and I’m committed to realizing full potential of Stitch Fix and driving long-term, profitable growth.

The California-based company is yet to detail the financial impact of winding down its operations in the U.K. Wall Street currently has a consensus “hold” rating on Stitch Fix stock.

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