Stitch Fix posts 12.6 percent drop in Q1 revenues

Online personal styling service Stitch Fix reported first quarter net revenue of 318.8 million dollars, a decrease of 12.6 percent year-over-year.

For the second quarter, the company forecasts revenue to range between 290 million dollars to 300 million dollars, down between 9 to 12 percent and adjusted Ebitda in the range of 8 million dollars to 13 million dollars.

For the full year, the company expects revenues to be in the range of 1.14 billion dollars to 1.18 billion dollars, down between 10 to 13 percent and adjusted Ebitda in the range of 25 to 36 million dollars.

“Our fiscal year is off to a strong start. We exceeded our expectations in the first quarter on the top and bottom lines,” said Matt Baer, chief executive officer, Stitch Fix.

Active clients of 2,434,000, decreased by 74,000 or 3 percent, quarter-over-quarter; and decreased 555,000 or 18.6 percent year-over-year. Net revenue per active client of 531 dollars increased 4.9 percent.

Gross margin of 45.4 percent, increased 180 basis points. Net loss was 6.3 million dollars and diluted loss per share was 5 cents, while adjusted EBITDA reached 13.5 million dollars.