Stitch Fix starts fiscal year strong with 7% sales growth

Stitch Fix Inc. announced on Thursday sales for the first quarter rose 7.3% to $342.1 million, with an increase in order revenue per customer offsetting a dip in active customer numbers.

The San Francisco-based company said active client numbers fell 5.2 % year-on-year to 2.307 million, while revenue per active client rose 5.3% to $559 during the three months ending November 1.

Despite the sales improvement, the subscription fashion company recorded a net loss of $6.4 million or diluted loss per share of $0.05 during the first quarter, unchanged on the prior-year period.
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“Q1 was a strong start to the fiscal year—we accelerated year-over-year revenue growth to 7.3% and captured considerable market share gains,” said Matt Baer, CEO, Stitch Fix.

“As a result of the successful execution of our transformation strategy, we are increasingly becoming the retailer of choice for more of our clients’ apparel and accessories needs. We are doing this by leveraging the latest in GenAI technology, the expertise of our human Stylists, and our assortment of leading brands to deliver the most client-centric and personalized shopping experience.”

Looking ahead, the company said it expects full-year revenue to land between $1.32 billion and $1.35 billion, up 4.2% to 6.5% year-on-year.