Latest news with #MattBaer
Yahoo
15 hours ago
- Business
- Yahoo
Stitch Fix Sees Fashion Fans Flee
Stitch Fix managed to top expectations on revenue and earnings for its fiscal third quarter ending May 3. It also boosted its guidance for the remainder of fiscal 2025. However, Stitch Fix continued to lose customers, and a weaker gross margin points to continuing business challenges as the apparel-delivery specialist deals with tariff-related issues. 10 stocks we like better than Stitch Fix › Here's our initial take on Stitch Fix's (NASDAQ: SFIX) fiscal third-quarter financial report. Metric Q3 FY 2024 Q3 FY 2025 Change vs. Expectations Total revenue $322.7 million $325 million +1% Beat Adjusted earnings per share ($0.18) ($0.06) N/M Beat Active clients 2.63 million 2.35 million -11% n/a Revenue per active client $525 $542 +3% n/a Investors initially had trouble deciding what they thought of Stitch Fix's fiscal third-quarter financial report, and it's not surprising once you look at the numbers. On the positive side, after having predicted falling sales for the quarter, Stitch Fix managed to eke out a modest gain. The apparel delivery specialist kept losing money, but losses were significantly narrower than most of those following the stock had anticipated. In addition, Stitch Fix boosted its forecast for the full 2025 fiscal year. The company now anticipates revenue of $1.254 billion to $1.259 billion, which is up from a previous forecast of $1.225 billion to $1.24 billion three months ago. However, there were still considerable problems that Stitch Fix had to deal with. Active client counts were down another 18,000 over the past three months to 2,353,000. That's 280,000 fewer active clients than Stitch Fix had this time last year. Revenue per active client managed to post a 3% rise, but a drop of 1.3 percentage points in gross margin to 44.2% suggested that Stitch Fix is having difficulty passing on the costs of goods sold to its customers. And even after making adjustments for a fiscal year with a different number of weeks, Stitch Fix still anticipates seeing full-year revenue drop 4.3% to 4.7% year over year. Stitch Fix's stock was extremely volatile in after-hours trading following the release of the report. Initially, the stock plunged as much as 11%, as investors seemed to react negatively to a relatively modest upward revision to full-year guidance. However, as time went on, shareholders seemed to become more comfortable with past results and future guidance. After 30 minutes of trading, Stitch Fix shares were actually up 1% from where they closed the regular session. CEO Matt Baer tried to frame the quarter as being an important milestone in Stitch Fix's longer-term transformation. Yet investors need to understand that even though the Stitch Fix CEO celebrated a return to year-over-year revenue growth, it's highly likely that the fiscal fourth quarter will bring another decline -- albeit because of a quirk in the number of weeks in Stitch Fix's fiscal calendar. More importantly, Stitch Fix can't afford to let margin performance slip just to get higher sales. To truly become "the retailer of choice for apparel and accessories," Stitch Fix needs to find a way to return to positive earnings. That's going to be difficult as long as active client counts keep sagging. Full earnings report Investor relations page Before you buy stock in Stitch Fix, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Stitch Fix wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,102!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $882,344!* Now, it's worth noting Stock Advisor's total average return is 996% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool recommends Stitch Fix. The Motley Fool has a disclosure policy. Stitch Fix Sees Fashion Fans Flee was originally published by The Motley Fool 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Fashion Network
2 days ago
- Business
- Fashion Network
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.
Fashion Network
2 days ago
- Business
- Fashion Network
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.
Yahoo
2 days ago
- Business
- Yahoo
Stitch Fix personalization investments show signs of paying off
This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter. Stitch Fix executives credited its client experience improvements, particularly deeper customer-stylist relationships and improved flexibility, for improved financial results on a Q3 2025 earnings call Tuesday. The company increased the maximum number of items per order from five to eight last year, which is directly contributing to 10% year-over-year average order value growth, according to CEO Matt Baer. Stitch Fix is rolling out a feature that will let customers start a curated order based on apparel they discover through the Freestyle service, according to Baer. Freestyle suggests items based on a customer's preferences, and the new option would let customers have their stylists design a complete order around a chosen piece. The CX improvements Stitch Fix began implementing in August are paying off, but the company still has work ahead. Net revenue rose 0.7% year over year to $325 million in the third quarter of 2025, marking the company's return to year-over-year revenue growth, according to a company earnings report. This marks the first year-over-year growth in 12 quarters. Third quarter 2025 marked the second straight quarter of year-over-year new customer growth, according to Baer. However, while the quarter saw the lowest quarter of sequential active client declines in three years, active clients fell 10.6% year over year to less than 2.4 million. Stitch Fix's improvements to personalization and discovery are designed to help the company stand out from other clothing retailers as the company continues to pursue a return to customer growth. 'As we move from the build phase into the growth phase of our transformation, we're focused on cementing ourselves as the retailer of choice for apparel and accessories by delivering the most client-centric and personalized shopping experience,' Baer said. Stitch Fix's value proposition, driven by convenience and personalization, is expected to resonate with shoppers even in the face of economic uncertainty, according to Baer. 'Clients come to Stitch Fix for the personalized styling, the convenience, the discovery of the items that they love, and it inherently offers additional value and protects our business from any pure price comparison shopping,' Baer said. Stylists in particular will play an important role, according to Baer. The 'strong and enduring relationships' between stylists and customers helps Stitch Fix tailor each client's experience and adjust to their budgets as needed.
Yahoo
2 days ago
- Business
- Yahoo
SFIX Q3 FY25 Earnings Call: Revenue Beats Expectations as Client Engagement Initiatives Drive Growth
Personalized clothing company Stitch Fix (NASDAQ:SFIX) reported Q1 CY2025 results exceeding the market's revenue expectations , but sales were flat year on year at $325 million. On top of that, next quarter's revenue guidance ($300.5 million at the midpoint) was surprisingly good and 4.3% above what analysts were expecting. Its non-GAAP loss of $0.06 per share was 48.5% above analysts' consensus estimates. Is now the time to buy SFIX? Find out in our full research report (it's free). Revenue: $325 million vs analyst estimates of $314.6 million (flat year on year, 3.3% beat) Adjusted EPS: -$0.06 vs analyst estimates of -$0.11 (48.5% beat) Adjusted EBITDA: -$2.71 million vs analyst estimates of $9 million (-0.8% margin, significant miss) Revenue Guidance for Q2 CY2025 is $300.5 million at the midpoint, above analyst estimates of $288 million EBITDA guidance for the full year is $45 million at the midpoint, above analyst estimates of $43.93 million Operating Margin: -3%, up from -7.7% in the same quarter last year Active Clients: 2.35 million, down 280,000 year on year Market Capitalization: $616.9 million Stitch Fix's third quarter fiscal 2025 results were shaped by its ongoing transformation strategy, particularly efforts to enhance client engagement and expand product offerings. CEO Matt Baer attributed revenue growth to larger Fix shipments, stronger merchandise assortments, and higher average order values, noting, 'Larger fixes have directly contributed to our AOV growth.' The company also saw continued momentum in its Freestyle channel and reported improvements in client retention and new client spending. Management credited these gains to investments in brand positioning, flexible service options, and deeper stylist-client relationships. However, they remained cautious about the macroeconomic backdrop, highlighting efforts to manage inventory efficiently and navigate ongoing pressures on consumer discretionary spending. Looking ahead, Stitch Fix's revenue guidance reflects confidence in the sustainability of recent client engagement strategies and assortment enhancements. Management cited increased flexibility in the Fix model and the introduction of themed shipments as key drivers for anticipated growth in the upcoming quarter. CEO Matt Baer explained, 'We believe we are well delivering the most client-centric and personalized shopping experience.' CFO David Aufderhaar emphasized that ongoing investments in marketing and assortment are expected to support growth, while also acknowledging external risks, including tariff changes and macroeconomic uncertainty. The company does not anticipate major cost impacts from tariffs in the next quarter, but is actively scenario planning for potential headwinds in the following year. Management attributed the quarter's return to revenue growth to larger Fix shipments, expanded product variety, and rising client engagement, while also addressing ongoing challenges in client acquisition and the broader macroeconomic landscape. Larger Fix shipments: Management highlighted that allowing clients to receive up to 8 items per Fix increased average order value and deepened customer engagement, with CEO Matt Baer noting these larger shipments are now being tested with new clients as well. Expanded merchandise assortment: The company broadened its product range, especially in athleisure, footwear, and accessories, contributing to higher keep rates and incremental revenue in both Women's and Men's segments. Sneakers saw particularly strong demand, up 35% year-over-year. Freestyle channel growth: Stitch Fix's direct-buy Freestyle channel posted its second consecutive quarter of revenue growth, driven by curated selections and more flexible shopping options that appeal to both existing and new clients. Brand and client experience investments: Ongoing investments in the 'retail therapy' brand platform and new engagement features, such as themed Fixes and assortment flexibility, led to improved new client acquisition and higher spending from recently acquired customers. Navigating external headwinds: Management addressed macroeconomic uncertainty and tariff risk, outlining a proactive approach that leverages supplier flexibility, private brand strength, and advanced data analytics to mitigate future cost pressures. Looking forward, management expects client-centric service enhancements, product variety, and proactive risk mitigation to drive revenue and margin performance, while acknowledging persistent macroeconomic and tariff-related uncertainties. Client engagement strategies: Management expects continued gains from larger Fixes, themed shipments, and personalized product recommendations, which are designed to increase wallet share and retention among both new and existing clients. Assortment and marketing investments: The company is increasing investment in marketing and merchandise variety, including non-apparel categories, with the expectation that these efforts will support sustainable client growth and higher average order values, though they could pressure gross margins near term. Tariff and macroeconomic risks: Leadership reiterated that current tariffs are not expected to materially impact costs in the next quarter, but they are closely monitoring the situation for the following year. Scenario planning, supplier diversification, and flexible merchandising are intended to mitigate potential headwinds if trade policies tighten or consumer spending weakens. In coming quarters, the StockStory team will monitor (1) whether new client acquisition and recurring shipments translate into active client growth, (2) the impact of continued product assortment expansion on average order value and keep rates, and (3) Stitch Fix's ability to offset potential tariff and macroeconomic pressures. Progress on digital engagement features and operational efficiency will also be key indicators of future performance. Stitch Fix currently trades at a forward EV-to-EBITDA ratio of 13.4×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
