Stitch Fix Reveals Q4 and Full Year 2024 Financial Results
Financial Results Overview
Stitch Fix, Inc. (NASDAQ: SFIX) recently unveiled its financial results for the fourth quarter and entire fiscal year 2024. The report highlights critical metrics and reflects the company's ongoing transformation strategy aimed at reimagining its client experience and optimizing operations.
Q4 2024 Performance Metrics
In the fourth quarter, Stitch Fix achieved a net revenue of $319.6 million, representing a decline of 12.4% year-over-year. When adjusting for the additional week in the quarter, the decline amounts to 18.3% year-over-year. Despite this revenue drop, the company demonstrated a remarkable gross margin of 44.6%, an increase of 50 basis points year-over-year, attributed to enhanced transportation leverage.
Net Loss and Cost Management
The fiscal quarter recorded a net loss of $35.7 million, resulting in a diluted loss per share of $0.29. However, the Adjusted EBITDA for this quarter stood at $9.5 million, reflecting disciplined cost management practices across operations. Additionally, the company's free cash flow was notably $4.5 million, allowing them to end the quarter with a robust $247.0 million in cash and no debt.
Full Year 2024 Financial Highlights
For the entire fiscal year 2024, Stitch Fix reported net revenue of $1.34 billion, marking a 16.0% decrease from the previous year, with a decline of 17.4% after adjusting for the impact of the extra week. The active client base declined to 2.51 million, down from 2.63 million in the previous quarter and a significant decrease of 19.6% year-over-year.
Revenue per Active Client
Interestingly, the net revenue per active client increased to $533, a rise of 4.5% year-over-year, demonstrating effective strategies for client engagement despite the reduction in active users. Stitch Fix’s gross margin for the fiscal year was consistently maintained at 44.3%, even with the challenges posed by external economic factors.
Future Financial Outlook
Looking ahead, Stitch Fix provided guidance for the first quarter of fiscal year 2025, projecting net revenues between $303 million and $310 million, translating to a year-over-year decline of 15% to 17%. The Adjusted EBITDA for the next quarter is anticipated to be between $5 million and $9 million, representing a margin of 1.7% to 2.9%.
Strategic Transformation Initiatives
Matt Baer, the CEO of Stitch Fix, emphasized the significant strides made during the previous fiscal year. Despite the challenges faced, the team remains committed to implementing transformative initiatives. This includes enhancing the client experience and pursuing revenue growth, which they aim to achieve by the end of the fiscal year 2026.
Conference Call and Engagement
As part of their commitment to transparency and investor engagement, Stitch Fix held a conference call to discuss the financial results and future outlook in detail. Investors and interested parties were encouraged to participate and learn more about the company's strategies moving forward.
About Stitch Fix, Inc.
Founded in 2011 and headquartered in San Francisco, Stitch Fix, Inc. (NASDAQ: SFIX) specializes in online personal styling services. The platform utilizes a unique combination of expert stylists and advanced algorithms to tailor clothing selections to individual client preferences. By doing so, Stitch Fix helps millions of users find clothing that not only fits well but also aligns with their personal style.
Frequently Asked Questions
What were Stitch Fix's Q4 2024 revenue figures?
Stitch Fix reported a net revenue of $319.6 million in Q4 2024.
How did the active client numbers change in FY 2024?
The active client base dropped to 2.51 million, down 19.6% year-over-year.
What was the Adjusted EBITDA for Q4 2024?
The Adjusted EBITDA was reported at $9.5 million.
What financial outlook did Stitch Fix provide for Q1 2025?
The company forecasts net revenues between $303 million and $310 million for Q1 2025.
How does Stitch Fix personalize the shopping experience for clients?
Stitch Fix combines expert stylists with advanced recommendation algorithms to curate clothing selections suited to each client's tastes.
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