Stitch Fix Reports 7.3% Revenue Growth to $342.1 Million Amid Client Count Decline

Stitch Fix, Inc. reported a net revenue of $342.1 million for the three months ended November 1, 2025, marking a 7.3% increase from $318.8 million in the same period last year. The company experienced a slight increase in gross profit to $149.3 million, up from $144.8 million, although the gross margin decreased to 43.6% from 45.4% due to higher transportation costs and lower product margins. The net loss from continuing operations was $6.4 million, slightly higher than the $6.3 million loss reported in the prior year.

The company’s active client count decreased by 5.2% year-over-year, from approximately 2.4 million to 2.3 million. This decline was attributed to challenges in acquiring and retaining clients, despite an increase in net revenue per active client, which rose to $559 from $531. The increase in revenue was primarily driven by higher average order values and the number of items kept per Fix, which partially offset the impact of the declining active client base.

Stitch Fix continues to focus on strategic initiatives to enhance client engagement and retention. The company is investing in technology and product development, particularly in integrating artificial intelligence into its operations. Additionally, the company has been adjusting its merchandise mix to improve client experience and attract new clients. The filing also noted that the company is navigating broader macroeconomic uncertainties that may affect consumer discretionary spending.

In terms of financial health, Stitch Fix reported $114.5 million in cash and cash equivalents and $129.7 million in investments as of November 1, 2025. The company has a credit facility with $50 million available, which it expects to utilize for working capital and capital expenditures. The company’s total liabilities increased to $326.7 million from $277.6 million, primarily due to higher accounts payable and accrued liabilities.

Looking ahead, Stitch Fix anticipates that macroeconomic conditions may continue to impact consumer spending, but it remains optimistic about maintaining revenue growth through improved average order values and client retention strategies. The company is committed to enhancing its overall client experience and expects to navigate the challenges posed by the current economic environment while focusing on long-term growth.