The earnings call showcased Stitch Fix's strong financial performance in Q1 with improved margins, successful product launches, and effective marketing strategies. However, challenges remain in terms of declining active clients and overall revenue decline year-over-year.

Company Guidance

In the Stitch Fix Q1 2025 earnings call, the company delivered strong results, exceeding expectations with a net revenue of $318.8 million and an adjusted EBITDA of $13.5 million. The call highlighted a 570 basis point improvement in year-over-year comps from Q4, a contribution margin of approximately 34%, and a 6% year-over-year increase in average unit retail (AUR). The company also reported a sequential increase in clients opting for recurring shipments, marking a notable achievement after more than three years. Additionally, the company raised its annual guidance, projecting total revenue between $1.14 billion and $1.18 billion, and adjusted EBITDA between $25 million and $36 million for FY 2025. The strategic focus on enhancing inventory assortment, incorporating AI for inventory management, and expanding Fix options have been pivotal in driving these positive outcomes.

Exceeded Revenue Expectations

Stitch Fix delivered net revenue of $318.8 million in Q1, surpassing expectations with a 570 basis point improvement in year-over-year comps from Q4 when adjusted for the 53rd week.

Adjusted EBITDA Performance

The company reported an adjusted EBITDA of $13.5 million, demonstrating strong financial performance and operational efficiency.

Improved Contribution Margin

Contribution margin improved to approximately 34%, indicating better cost management and profitability.

Inventory Newness and Client Response

The penetration of newness in inventory increased by more than 40%, driving average unit retail (AUR) up by 6% year-over-year. Sales of wide leg and boot cut denim styles increased by 250%.

Successful Launch of Private Label Brands

The Commons and Montgomery Post, two new private label brands, showed encouraging early results, with The Commons becoming a top 10 brand for clients under 40 in the men's business.

Strong Results in National Brands

Positive comps were recorded for national brands such as Vuori, Marine Layer, and Vineyard Vines, indicating strong brand partnerships.

Increased Flexibility in Client Offerings

Clients opting for more flexible Fixes, with up to 8 items, requested nearly 40% more items and drove approximately 50% greater average order values (AOVs).

Improved Brand Awareness and Marketing Efficiency

The new marketing campaign 'Retail Therapy' led to lower cost per acquisition and improved brand awareness, especially in women's business.

Reactivations and Targeted Marketing

Reactivations increased by 17% year-over-year, driven by targeted marketing efforts and improved client engagement.

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Stitch Fix (SFIX) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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SFIX Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 01, 2018	2018 (Q4)	- / 0.18	-0.03	700.00% (+0.21)	―	―
Dec 10, 2018	2019 (Q1)	- / 0.10	0.04	150.00% (+0.06)	―	―
Mar 11, 2019	2019 (Q2)	- / 0.12	0.02	500.00% (+0.10)	―	―
Jun 05, 2019	2019 (Q3)	- / 0.07	0.09	-22.22% (-0.02)	―	―
Oct 01, 2019	2019 (Q4)	- / 0.07	0.18	-61.11% (-0.11)	―	―
Dec 09, 2019	2020 (Q1)	- / 0.00	0.1	―	―	―
Mar 09, 2020	2020 (Q2)	- / 0.11	0.12	-8.33% (>-0.01)	―	―
Jun 08, 2020	2020 (Q3)	- / -0.33	0.07	-571.43% (-0.40)	―	―
Sep 22, 2020	2020 (Q4)	- / -0.44	0.07	-728.57% (-0.51)	―	―
Dec 07, 2020	2021 (Q1)	- / 0.09	0	―	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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SFIX Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Dec 10, 2024	$4.60	$6.64	+44.35%
Sep 24, 2024	$3.75	$2.27	-39.47%
Jun 04, 2024	$2.67	$3.46	+29.59%
Mar 04, 2024	$3.28	$2.59	-21.04%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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