Stitch Fix Reports Q3 Revenue Increase to $325M, Net Loss Improves

Stitch Fix, Inc. reported its financial results for the three and nine months ended May 3, 2025, revealing a net revenue of $325.0 million for the quarter, a slight increase of 0.7% compared to $322.7 million in the same period last year. However, for the nine-month period, revenue decreased by 6.1% to $955.9 million from $1.02 billion. The company experienced a net loss from continuing operations of $7.4 million for the quarter, significantly improved from a loss of $22.0 million in the prior year. For the nine months, the loss was $20.3 million, down from $83.1 million in the same period last year.

The company noted a decline in active clients, with approximately 2.35 million as of May 3, 2025, down 10.6% from 2.63 million a year earlier. This decrease was attributed to challenges in client acquisition and retention, which the company anticipates will continue to impact revenue. Despite the drop in active clients, Stitch Fix reported an increase in net revenue per active client, which rose to $542 from $525, indicating higher average order values.

In terms of operational efficiency, Stitch Fix has made strides in reducing its selling, general, and administrative expenses (SG&A), which fell by 10.8% to $153.3 million for the quarter and by 15.9% to $454.9 million for the nine months. This reduction was largely due to lower compensation and benefits expenses, including stock-based compensation, as well as decreased depreciation and amortization costs. The company’s operating loss improved by 60.9% for the quarter and 69.7% for the nine months, reflecting its ongoing restructuring efforts aimed at cost reduction.

Stitch Fix has also made strategic moves to enhance its financial position, including entering a $50 million revolving credit facility with Citibank, which provides additional liquidity. As of May 3, 2025, the company had $108.9 million in cash and cash equivalents, down from $162.9 million a year earlier. The company did not repurchase any shares during the reporting period, leaving $120 million available under its existing share repurchase program.

Looking ahead, Stitch Fix anticipates continued challenges in client acquisition and retention, which may negatively affect revenue growth. The company remains focused on improving the client experience and enhancing marketing strategies to attract new clients while retaining existing ones. The management is also evaluating further cost reductions and operational efficiencies to navigate the current macroeconomic environment, which poses risks to consumer discretionary spending.