Stitch Fix manages to narrow losses but revenues still down
Embattled fashion subscription service Stitch Fix announced on Monday a 22% dive in fourth-quarter revenues to $375.8 million, capping off a fiscal 2023 year that saw revenues decline by double-digits.
The San Francisco-based company said yearly revenue fell to $1.6 billion, a decrease of 21% year-over-year, equating to a net loss of $172 million and diluted loss per share of $1.50. However, the company did manage to narrowed losses during the 12 months ending July 31, from a net loss of $207.1 million in the prior-year period
Net loss for the fourth quarter came in at $28.7 million, with a diluted loss per share of $0.24, also narrowing from a net loss of $96.3 million last year.
In late August, the struggling U.S. 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.
Also in June, the retailer said it had appointed former Macy's executive Matt Baer as its new CEO, effective June 26.
“Since joining Stitch Fix in late June, I have spent time assessing every aspect of our business, operating model, and organization; getting to know what our clients feel we do well and where we can do better; and identifying opportunities to both optimize in the short term and reimagine for the future,” said Baer, who replaced Stitch Fix's founder Katrina Lake, who had assumed the top role on an interim basis in January after Elizabeth Spaulding had stepped down as chief executive.
“Our current business results are not indicative of what I believe this company can deliver, and I am committed to realizing the full potential of Stitch Fix and driving long-term, profitable growth.”
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