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Stitch Fix Reports Q1 2025 Financial Results
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Stitch Fix Reports Q1 2025 Financial Results

Stitch Fix ( (SFIX) ) has released its Q1 earnings. Here is a breakdown of the information Stitch Fix presented to its investors.

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Stitch Fix, Inc. is a leading online personal styling service that pairs expert stylists with advanced AI to offer personalized clothing selections for its clients, operating predominantly in the e-commerce and fashion industry.

Stitch Fix has reported its financial results for the first quarter of fiscal year 2025, showcasing a strong start with performance exceeding expectations despite a decrease in overall revenue. The company continues to focus on transforming its client experience and assortment to drive future growth.

The first quarter of fiscal 2025 saw Stitch Fix generate a net revenue of $318.8 million, marking a 12.6% decrease from the previous year. The number of active clients declined by 3% quarter-over-quarter and 18.6% year-over-year, although net revenue per active client increased by 4.9%. Despite a net loss of $6.3 million, the company achieved an adjusted EBITDA of $13.5 million through disciplined cost management, contributing to a gross margin increase to 45.4%. The quarter ended with $253.3 million in cash and no debt, indicating solid financial management.

Looking ahead, Stitch Fix projects net revenue between $290 million and $300 million for the second quarter of fiscal 2025, maintaining a focus on achieving revenue growth by the end of fiscal year 2026. The company anticipates a stable gross margin and plans to manage advertising expenses towards the higher end of their range, reflecting continued strategic investment in client acquisition and retention.

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