Stitch Fix Inc Announces Fourth Quarter and Full Fiscal Year 2024 Financial Results
Intellectia.AI2024-09-25
Stitch Fix, Inc. Announces Fourth Quarter and Full Fiscal Year 2024 Financial Results
Stitch Fix, Inc. (NASDAQ: SFIX) reported its financial results for the fourth quarter and full fiscal year 2024, which ended on August 3, 2024.
Consolidated Financial Metrics
| Metric | Q4 FY2024 | YoY Change | Consensus Estimates (Q4) | FY2024 | YoY Change |
|---|---|---|---|---|---|
| Revenue | $319.6 million | Decrease of 12.4% | $318.5 million | $1.34 billion | Decrease of 16.0% |
| Earnings Per Share (EPS) | $(0.29) | Not provided | $(0.19) | $(0.99) | Not provided |
| Adjusted EBITDA | $9.5 million | Not provided | Not provided | $29.3 million | Not provided |
Interpretation : Stitch Fix's Q4 revenue slightly surpassed the consensus estimate, achieving $319.6 million, although it experienced a 12.4% decline year-over-year. The company's EPS was weaker than expected at $(0.29) compared to the $(0.19) estimated. The full-year revenue of $1.34 billion also marked a 16.0% decrease year-over-year.
Revenue by Segment
| Segment Performance | Q4 FY2024 vs Previous Guidance | YoY Change |
|---|---|---|
| Net Revenue | High-end of guidance | -12.4% |
| Gross Margin | Improved due to better transport leverage | +50 basis points |
Interpretation : Stitch Fix delivered revenue at the high end of its guidance and saw an increase in gross margin, primarily attributed to improved transportation leverage.
Key Operational Highlights
- Ceased operations of UK business, now a discontinued operation.
- Achieved an adjusted EBITDA of $9.5 million due to disciplined cost management.
- Active clients were 2,508,000, representing a decrease of 4.7% quarter-over-quarter and 19.6% year-over-year.
- Free cash flow was positive at $4.5 million for the fourth fiscal quarter.
Executive Commentary
CEO Matt Baer expressed pride in the team's execution of the transformation strategy, highlighting progress in strengthening the business foundation and reimagining client experiences. Baer remains confident in Stitch Fix's trajectory toward returning to revenue growth by the end of FY2026, with initiatives expected to boost client acquisition and engagement.
Forward Guidance
Stitch Fix provided financial outlook for the first quarter of fiscal 2025, though specific figures were not disclosed due to uncertainties in restructuring and variable costs. The company anticipates a return to revenue growth by FY2026.
Market Reaction
Following the earnings release, Stitch Fix's stock experienced a decline of approximately 1.05%.
The report has been organized into a clear markdown table format, and unnecessary sections have been removed to focus on the most relevant financial and operational information.
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