Stitch Fix Reports Q4 and Full-Year 2024 Financial Highlights
Stitch Fix Financial Results Overview
Stitch Fix, Inc. (NASDAQ: SFIX), recognized as a leading online personal styling service, recently shared its financial outcomes for the fourth quarter and the complete fiscal year 2024, marking the end of its 53-week fiscal calendar period. This year concluded with significant findings on both revenue and client engagement, reflecting the company's steady commitment to evolving its business model.
Executive Insights
Matters of leadership were highlighted in a statement from Matt Baer, the Chief Executive Officer. He emphasized, "We are diligently implementing our transformation strategy, and I'm excited to report that our results for the fourth quarter are at the higher end of our projections. The motivation and dedication in the Stitch Fix team have been commendable this year, and the enhancements to our client experience show promise moving forward. I'm optimistic that we are gearing towards a return to revenue growth by fiscal year 2026, laying a stronger foundation for our operations and client relations."
Fourth Quarter Fiscal 2024 Highlights
In the fourth quarter, Stitch Fix reported a net revenue of $319.6 million, which was a decrease of 12.4% compared to the same quarter from the previous year. When adjusted for the 53rd week impact, this decline extended to 18.3%. Despite this, the gross margin saw a slight improvement, reaching 44.6%, a 50 basis points increase enabled by better transportation management.
The adjustments for this quarter also indicated a net loss of $35.7 million alongside a diluted loss per share of $0.29. Nevertheless, the company reported an adjusted EBITDA of $9.5 million, emphasizing rigorous cost management. Free cash flow amounted to $4.5 million, complemented by a year-end cash position of $247.0 million, with no debt.
Full Year Performance
For the entire fiscal year, Stitch Fix's net revenue totaled $1.34 billion, down 16.0% year-over-year. This decline included a reduction in its active clients, which fell to 2.5 million, a decrease of 125,000 clients or 4.7% quarter-over-quarter and a staggering 613,000 or 19.6% year-over-year. Despite the overall decline in active clients, Stitch Fix noted an increase in net revenue per active client of 4.5% year-over-year, reaching $533.
Through sustained efforts and disciplined execution, Stitch Fix recorded a net loss of $118.9 million, with an adjusted EBITDA of $29.3 million. The free cash flow for the fiscal year totalled $14.2 million, illustrating the company’s continued focus on maintaining cash reserves amidst a challenging economic landscape.
Looking Ahead: Fiscal Year 2025
As Stitch Fix gears up for the first quarter of fiscal 2025, which ends shortly, the projected net revenue is estimated to range between $303 million to $310 million, reflecting a year-over-year decline of about 17% to 15%. Additionally, the anticipated adjusted EBITDA is estimated between $5 million to $9 million.
Looking at the entire fiscal year 2025, Stitch Fix predicts revenues between $1.11 billion to $1.16 billion with a similar year-over-year decline projected.
Exciting Changes on the Horizon
The company is also working on enhancing its client experience through innovative strategies, including an increased engagement of stylists and new private label brands to better connect with a wider customer base. These initiatives symbolize Stitch Fix's adaptability and resilience, aiming to recover its active client base while improving client satisfaction.
Frequently Asked Questions
What are Stitch Fix's recent financial results?
Stitch Fix reported a fourth-quarter net revenue of $319.6 million with a net loss of $35.7 million, alongside a full year revenue of $1.34 billion with a loss of $118.9 million.
What are the projections for fiscal year 2025?
The projected net revenue for Q1 fiscal 2025 is estimated to be between $303 million to $310 million, and for the entire fiscal year, it's anticipated to be between $1.11 billion and $1.16 billion.
How is Stitch Fix managing its losses?
Stitch Fix is focusing on cost management efforts which have resulted in an adjusted EBITDA of $9.5 million for Q4 and $29.3 million for the full year 2024.
What initiatives is Stitch Fix pursuing to enhance client experience?
The company is introducing more stylist engagement and private label brands, aimed to connect better with clients and to enhance the overall shopping experience.
How many active clients does Stitch Fix currently have?
As of the end of fiscal year 2024, Stitch Fix reported 2,508,000 active clients.
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