American online personal styling service Stitch Fix Inc has reported net revenue of $311.2 million in the fourth quarter (Q4) of fiscal 2025 (FY25) ended August 2, down 2.6 per cent year-over-year (YoY). Adjusting for the impact of the extra week in Q4 FY24 of $21.6 million, net revenue increased 4.4 per cent YoY.

Active clients totalled 2.309 million, down 7.9 per cent YoY. The gross margin slipped 100 basis points (bps) to 43.6 per cent, while the company posted a net loss of $8.6 million compared with $35.7 million a year earlier. Adjusted EBITDA was $8.7 million, reflecting ongoing cost discipline. It reported a basic and diluted loss per share of $0.07, an improvement from loss of $0.3 in the same quarter of fiscal 2024.

Stitch Fix has reported net revenue of $311.2 million in Q4 FY25, down 2.6 per cent YoY but up 4.4 per cent on an adjusted basis, with net loss narrowing to $8.6 million.
Full-year revenue was $1.27 billion, net loss $28.8 million, and Adjusted EBITDA $49.1 million.
With $242.7 million in cash and no debt, it projects modest growth in FY26, leveraging AI, brand partnerships, and stylists.

For full fiscal, Stitch Fix reported net revenue of $1.27 billion, down 5.3 per cent from FY24 (or 3.7 per cent adjusted). The gross margin improved slightly to 44.4 per cent, while the net loss narrowed to $28.8 million from $118.9 million in the prior year.

Adjusted EBITDA reached $49.1 million, with free cash flow of $9.3 million and year-end liquidity of $242.7 million in cash and investments, with no debt. For FY25, the company posted a basic and diluted loss per share of $0.22, compared with $1.07 in FY24, reflecting a significantly reduced net loss YoY.

“Fiscal 2025 was a milestone year for Stitch Fix. We finished the year with our second consecutive quarter of year-over-year revenue growth on an adjusted basis, and once again gained share in the US apparel market,” said Matt Baer, CEO at Stitch Fix. “Our positive momentum was driven by the successful execution of our transformation strategy, including the improvements to our client experience and assortment. Looking ahead, we will continue to fuel growth by harnessing the power of AI, our assortment of leading brands, and the human connection of our Stylists, to deliver the most client-centric and personalized shopping experience.”

Looking ahead, the company expects Q1 FY26 revenue of $333–338 million, up 4.4–6 per cent YoY, with adjusted EBITDA between $8–11 million. For full FY26, Stitch Fix projects revenue of $1.28–1.33 billion, adjusted EBITDA of $30–45 million, and gross margin between 43–44 per cent.

Fibre2Fashion News Desk (SG)

The seasonally-adjusted S&P Global US Manufacturing Purchasing Managers’ Index (PMI), slipped to 52 in September from 53 in the previous month, signalling a weaker rate of expansion of the manufacturing economy.

The latest survey showed a weaker gain in production, whilst new order book growth softened as tariffs continued to weigh on exports. Tariffs and broader policy uncertainty also dampened firms’ assessment of the business outlook, but expectations of manufacturing production reshoring and hopes of better demand in the year ahead meant sentiment remained positive overall, S&P Global said in a press release.

Cost pressures meanwhile were again elevated, with tariffs reportedly the dominant factor pushing up overall purchase prices. Whilst firms sought to pass on higher supplier costs to clients, competitive pressures and signs of faltering demand meant output charge inflation softened to an eight-month low.

The S&P Global US Manufacturing PMI slipped to 52 in September from 53 in August, indicating slower expansion.
Tariffs weighed on exports—especially to Canada and Mexico—and drove up costs, while production and new orders rose modestly.
Despite weaker demand, employment increased, and optimism persisted on reshoring prospects.
Selling price inflation eased to an eight-month low.

Weaker growth emanated from a slowdown in new order book gains. Although up for a ninth successive month, new orders rose only modestly and at a pace below the survey average. Exports were a source of demand weakness, falling overall for a third month in a row. Tariffs were reported to have weighed on export sales especially to Canada and Mexico.

A slowdown in demand growth led to weaker output gains in September. Overall output increased at a much weaker pace than August’s recent high. However, rising to a faster degree than new orders, production increased sufficiently for firms to add to their stocks of finished goods for a second month in succession.

Work outstanding declined at the fastest pace for five months, in part due to an expansion of labour capacity. September’s survey showed that employment rose solidly as firms filled vacancies and as part of business expansion plans.

A positive outlook also helped encourage manufacturers to take on additional staff, with several anticipating an increase in sales over the next 12 months. In some instances, tariffs were seen as driving an expansion of domestic focused industrial output.

The overall business activity expectations subsequently improved slightly compared to August. That was despite some ongoing uncertainty amongst the panel related to trade and wider federal government policies.

Meanwhile, tariffs continued to push up input prices during September, with vendors reportedly raising their charges. Although input cost inflation weakened since August, it remained elevated in the context of the survey history. High prices discouraged purchasing activity in September, which overall rose only slightly on the month. Where buying rose, this was linked to a desire to bolster inventories, in part due to tariff and supply-side uncertainty. Difficulties importing goods and stock shortages were again noted as driving average vendor delivery times higher in September.

Regarding manufacturers’ own selling prices, these rose at a noticeably slower pace in September as competitive pressures and slower demand growth weighed on company pricing power. Although still rising at a historically strong pace, output price inflation softened in September to its lowest level since January, added the release.

“US manufacturing production rose for a fourth successive month in September, but the upturn lost momentum as companies reported a drop in order book growth alongside a buildup of unsold finished goods inventories,” said Chris Williamson, chief business economist at S&P. “Despite a slowing in demand growth, many factories produced more goods, using up raw materials that had been stockpiled ahead of tariff implementation. This poses a downside risk to future production in the absence of a pickup in demand, though also hints at some alleviation of price pressures: there is already evidence of companies offering excess stock to customers at reduced rates.”

“A growing uncertainty, however, relates to supply chains, with September seeing an increase in tariff-related vendor delays, which threaten to curb production and push up prices if these difficulties persist or intensify,” added Williamson.

Fibre2Fashion News Desk (SG)

Agreeing to fast-track work on a more ambitious single economic market (SEM), advancing regulatory and standards alignment through a new Heads of Agreement between Standards Australia and Standards New Zealand, and deepening economic integration by strengthening the Trans-Tasman Mutual Recognition Arrangement were among some of the key outcomes of the annual Closer Economic Relations (CER) Trade Ministers’ Meeting between the two countries.

Both sides agreed to coordinate regional and global trade engagement, including joint action on World Trade Organization (WTO) reforms ahead of the upcoming Ministerial Conference, and collaboration through various multilateral agreements, a joint statement issued after the meeting said.

Australia and New Zealand recently agreed to fast-track work on a single economic market, sign a pact for regulatory and standards alignment, and deepen economic integration by strengthening the Trans-Tasman Mutual Recognition Arrangement.
Trade ministers from both sides met in Monarto, and agreed to coordinate joint action on WTO reforms and collaborate through various multilateral agreements.

New Zealand Trade and Investment Minister Todd McClay and Australian Trade and Tourism Minister Don Farrell concluded meeting in in Monarto, South Australia.

“This is about making it simpler for businesses to trade, invest and grow, not just between our two countries but across the wider region,” McClay said.

Fibre2Fashion News Desk (DS)