Stitch Fix continues to narrow losses though sales, user numbers wane

Stitch Fix announced on Tuesday net revenue fell 18% to $364.8 million during the first quarter, as the struggling U.S. firm continues to recover losses under the direction of new chief executive, Matt Baer.

The San Francisco-based subscription fashion company said active clients from continuing operations fell 15%, year-over-year, while net revenue per active client dropped to $506, a decrease of 6% year-over-year.

Despite the drop in users and revenues, the company managed to narrow losses during the quarter ending October 28, posting a net loss of ​$35.49 million, compared to a net loss of $55.92 million for the prior-year period.

​“The original vision of Stitch Fix is as powerful, relevant and compelling today as it was when the company was launched, and I am confident that our best days are ahead of us,” said Matt Baer, chief executive officer, who was appointed to helm Stitch Fix in June.

“This quarter’s results are encouraging, and I’m pleased with the progress we have made to date. We continue to focus on optimizing the business in the short term while working to reimagine our business and operating model with the goal of delivering sustainable and profitable growth in the future.”

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’s all over for the business in Britain at the end of October.