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Stitch Fix swings to loss but returns to revenue growth

By Huw Hughes

23 Sept 2020

Business

Online personal styling service Stitch Fix saw its revenues return to growth for the fourth quarter but still swung to a loss.

The San Francisco-based company's net revenue reach 443.4 million dollars in the quarter, up 11 percent compared to the previous year on an adjusted basis. Its active client base increased 9 percent year-on-year to 3.5 million during that period.

But worse news was that the company recorded a fourth-quarter net loss of 44.5 million dollars compared to the profit of 7.2 million dollars it reported in the same period last year.

For the full fiscal year, the company’s net revenue increased 11 percent to 1.7 billion dollars while its net loss reached 67.1 million dollars compared to a profit of 36.9 million dollars the prior year.

“I'm very pleased with our strong Q4 results and our return to topline growth,” Stitch Fix founder and CEO Katrina Lake commented. “I'm proud of our team for successfully navigating through the deepest impacts of Covid-19 and am excited to bring our model of an individual and deeply personalized shopping experience to even more consumers as they transition to a future of online shopping.”

Stitch Fix president Elizabeth Spaulding added: “We’re particularly excited by the momentum of our direct buy offering. It’s still early days, but the ability to shop personalized items and outfits in our feed-based experience is clearly resonating with our clients.”

Photo credit: Stitch Fix