Stitch Fix sales hit by plunging active users, continues to narrow losses

Stitch Fix announced net revenue from continuing operations of $330.4 million for the second quarter, a decrease of 18%, as the U.S. apparel subscription service continues to hemorrhage active client numbers.

The San Francisco-based company said active clients from continuing operations fell 6% to 2,805,000, quarter-over-quarter; and a decrease o f17%, year-over-year. Meanwhile, net revenue per active client from continuing operations dipped 3% to $515, during the three months ending January 27.

For the three months, net losses did, however, narrow to $35.5 million, compared to $65.6 million in the prior-year period.

​“The original Stitch Fix vision, to create an easier and more enjoyable way for people to shop for clothing and accessories, remains both relevant and compelling,” said Matt Baer, chief executive officer, Stitch Fix.

“Our transformation efforts are grounded in fully realizing that vision and include both strengthening the foundation of our company and reimagining our client experience. I am encouraged by the progress we continue to make and am confident we have the right strategic priorities in place to set us up to drive sustainable, profitable growth.”

Looking ahead, Stitch Fix said it expects fiscal 2024 revenues from continuing operations to be between $1.29 billion and $1.32 billion, down18% to 20% for the year.

In late August, the fashion firm confirmed its exit from the UK. Back in June, it had said it was mulling an exit from the market in fiscal year 2024 but, confirmed that it would be all over for the business in Britain at the end of October.