Stitch Fix sales still dropping as turnaround efforts continue, losses narrow

Stitch Fix announced on Tuesday revenue fell 16 percent to $322.7 million in the third quarter, as active customer numbers continue to plummet at the subscription-based apparel firm.

The San Francisco-based company said active clients fell 6 percent to 2,633,000 quarter-over-quarter, and decreased 20 percent to 655,000 year-over-year for the three months ending April 27. However, net revenue per active client rose 2 percent to $525.

For the quarter, the U.S. company reported a net loss from continuing operations of $22 million and diluted loss per share from continuing operations of $0.18, narrowing drastically from a net loss of $92 million and diluted loss per share of $0.70 in the prior-year quarter.

​“At Stitch Fix, we are on a mission to help people discover the styles they will love that fit perfectly so they always look and feel their best, and this commitment is at the heart of our transformation,” said Matt Baer, chief executive officer, Stitch Fix.

“Our Q3 revenue and adjusted EBITDA exceeded our expectations, which we believe signals that our transformation efforts are beginning to work. While we are still in early days, I am confident that our strategic focus on strengthening our foundation and reimagining the client experience will put us on the right path to deliver sustainable, profitable growth in the future.”

Earlier this year, the company ceased operations of its UK business, adding it met the accounting requirements for reporting the UK business as a discontinued operation.