Press release
Stitch Fix Announces Third Quarter Fiscal Year 2022 Financial Results
SAN FRANCISCO, June 09, 2022 (GLOBE NEWSWIRE) -- Stitch Fix, Inc. (NASDAQ: SFIX), the leading online personal shopping and styling service, has released its
About this update from Stitch Fix, Inc.
[{"type":"text","content":"SAN FRANCISCO, June 09, 2022 (GLOBE NEWSWIRE) -- Stitch Fix, Inc. (NASDAQ: SFIX), the leading online personal shopping and styling service, has released its financial results for the third quarter of fiscal year 2022 ended April 30, 2022. Stitch Fix CEO Elizabeth Spaulding said, “While third quarter top-line results, as well as active client counts, were largely within our expectations, we know we still have work to do. This quarter we made progress on improving the overall client experience in order to position Stitch Fix for profitable growth and value creation over time. We are encouraged by the activity we are seeing inside the expanded Stitch Fix ecosystem, including our sixth consecutive quarter of revenue per active client growth.” Spaulding added, “We strongly believe in our strategy of expanding our established Fix model through the addition of on-demand styling and shopping via Freestyle. Together, this powerful combination addresses the full continuum of personalized shopping needs. Our team is committed to executing our strategy with excellence while thoughtfully and deliberately making the necessary decisions and innovations to drive our business forward.” Third Quarter Key Metrics and Financial Highlights Net revenue of $492.9 million, a decrease of 8% year over yearActive clients of 3,907,000, a decrease of 200,000 or 5% year over yearNet revenue per active client (RPAC) of $553, an increase of 15% year over yearNet loss of $78.0 million and diluted loss per share of $0.72Adjusted EBITDA Loss of $36.0 million Organizational Update In light of Stitch Fix’s recent business momentum and an uncertain macroeconomic environment, the Company undertook a detailed review of its business and what is required to build for the future. As a result, the Company shared the difficult decision to reduce its workforce. This reduction includes approximately 15% of salaried positions, and represents approximately 4% of roles in total. Most of the reductions are in non-technology corporate roles and styling leadership roles. As a result of this decision and other changes, Stitch Fix expects annual cost savings of $40 million to $60 million in fiscal year 2023. The Company expects to incur restructuring and other one-time charges of approximately $15 million to $20 million to be recognized in the fourth quarter of fiscal 2022. Stitch F...