The stock of Stitch Fix (SFIX) is up 22% after the online clothing retailer announced a financial loss that was narrower than expected and raised its forward guidance.
San Francisco-based Stitich Fix posted a fiscal first-quarter loss of -$0.05 U.S., which was much better than the loss of -$0.14 U.S. that analysts had forecast.
Revenue in the quarter totaled $318.8 million U.S., which beat expectations of $307 million U.S. Sales were down 12.6% from a year earlier.
Management said that their fiscal year is “off to a strong start,” and added that improvements made to the customer experience at Stitch Fix are beginning to pay off.
Stitch Fix ended the quarter with 2.43 million active clients, down 18.6% from a year ago but demonstrating a slower rate of decline than in recent quarters.
Net revenue per active user rose 4.9% to $531 U.S. At the same time, gross margins at Stitch Fix grew 180 basis points to 45.4%.
Looking ahead, Stitch Fix said that for its fiscal second quarter, it anticipates revenue of $290 million U.S. to $300 million U.S., which is ahead of Wall Street consensus estimates that called for $283.6 million U.S. in sales.
Stitch Fix maintained its full-year fiscal 2025 revenue outlook of $1.14 billion U.S. to $1.18 billion U.S. The company forecast a return to revenue growth by the end of fiscal 2026.
Prior to today (Dec. 11), the stock of Stitch Fix had risen 29% this year to trade at $4.60 U.S. per share.
