Stitch Fix returns to sales growth, narrows earnings losses
Stitch Fix announced on Wednesday sales returned to growth in the third quarter, as the U.S. subscription fashion service continues to turnaround a decline in its customer numbers.
The San Francisco-based company said revenues rose 0.7%, compared to a 5.5% decline in the prior quarter, to reach $325 million for the three months ending May 3.
The gain was propelled by a 3.2% increase in revenue per active client to $542, partially offset by a 10.6% drop in active client numbers to 2.353 million.
The company also managed to narrow net losses to $7.4 million, compared to a net loss of $21.3 million in the prior-year period.
'Stitch Fix delivered strong third quarter results, marked by our overall return to year-over-year revenue growth,' said Matt Baer, CEO, Stitch Fix.
'Our performance, which exceeded expectations, is the direct result of the strength of the Stitch Fix value proposition and the team's disciplined execution of our strategy. Now in the growth phase of our transformation, we are focused on cementing our role as the retailer of choice for apparel and accessories by consistently delivering the most client-centric and personalized shopping experience.'
Looking ahead, the company said it now expects full-year sales to be between $1.254 billion and $1.259 billion for a decline of 6.2% to 5.9%, compared to its prior sales guidance of $1.225 billion and $1.24 billion, or down 8.4% to 7.3% for the year.
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