Stitch Fix Reports Mixed Q4 2024 Results: Revenue Up, Clients Down
Stitch Fix, the online personal styling service, has reported its financial results for the fourth quarter and fiscal year 2024. While the company saw revenue growth and improved client experience, it also faced a decline in active clients and a dip in stock price.
CEO Matt Baer hailed fiscal 2025 as a significant year, marked by two consecutive quarters of revenue growth. Revenue indeed rose by 4.4% to $311.2 million, surpassing estimates. However, active clients decreased by 7.9% year over year to 2.31 million. This subscriber decline led to a double-digit drop in Stitch Fix's stock the day after it initially rose in after-hours trading.
Looking ahead, Stitch Fix expects full-year revenue growth of 1% to 5%. For the fiscal first quarter, management forecasts revenue growth of 4.4% to 6% and adjusted EBITDA of $8 million to $11 million. Despite these projections, the company's gross margin fell 100 basis points to 43.6%, and adjusted EBITDA slipped to $8.7 million. Stitch Fix reported a GAAP loss per share of $0.07, which was better than the expected loss of $0.10 per share.
Stitch Fix's fiscal 2025 was a mixed bag, with revenue growth and improved client experience offset by a decline in active clients and a stock price dip. As the company looks towards the first quarter of fiscal 2026, investors will be watching to see if Stitch Fix can maintain its revenue growth momentum and stabilize its subscriber base.
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