Core Insights - Stitch Fix, Inc. (SFIX) reported third-quarter fiscal 2025 results with both top and bottom lines exceeding Zacks Consensus Estimates, leading to a 7.5% increase in shares during after-market trading [1][9] Financial Performance - The company recorded an adjusted loss of $0.06 per share, which was better than the expected loss of $0.12 and improved from a loss of $0.15 in the same quarter last year [3][9] - Net revenues reached $325 million, surpassing the Zacks Consensus Estimate of $315 million, and reflecting a year-over-year increase of 0.7% due to a rise in net active clients [3][9] - Active clients totaled 2,353,000, representing a year-over-year decline of 10.6%, while average net revenues per active client increased by 3.2% to $542 [4] Margins and Expenses - Gross profit decreased by 2.3% to $143.6 million, with a gross margin decline of 130 basis points to 44.2%, primarily due to lower product margins as the company invested in client experience [5] - Selling, general and administrative expenses (SG&A) fell by 10.8% to $153.3 million, with SG&A as a percentage of net revenues decreasing to 47.2% [6] - Adjusted EBITDA improved to $11 million from $6.7 million in the previous year, with an adjusted EBITDA margin of 3.4%, reflecting effective cost management [7] Cash and Equity Position - At the end of the fiscal third quarter, the company had cash and cash equivalents of $108.9 million, short-term investments of $125.3 million, and no debt, with net inventory at $114.4 million and shareholders' equity of $200.4 million [8] Future Guidance - For the fourth quarter of fiscal 2025, SFIX anticipates net revenues between $298 million and $303 million, indicating a year-over-year decline of 5.2-6.7% [13] - The full-year revenue outlook was raised to $1.25-$1.26 billion, with adjusted EBITDA projected between $43 million and $47 million [14] Stock Performance - SFIX shares have increased by 19.8% over the past three months, outperforming the industry growth of 11% [15]

Core Insights - Personalization is a key strategy for Stitch Fix to retain and potentially gain market share despite external challenges such as tariffs or a slowdown in consumer spending [1][2] - The company has not yet experienced any impact from tariffs and does not anticipate any in the current quarter, but is prepared to mitigate any potential effects [2] - Stitch Fix's value proposition, which includes personalized styling and convenience, remains strong even in challenging macroeconomic conditions [2][3] Financial Performance - For the quarter ending May 3, Stitch Fix reported a year-over-year revenue growth of 0.7% [3] - The company is entering a growth phase in its transformation strategy, focusing on a client-centric and personalized shopping experience [4] Business Strategy - Stitch Fix's personalized shopping experience combines human stylists with an app that learns customer preferences through a style quiz, creating a "multilayered style persona" [5] - The company emphasizes the uniqueness of each client's experience, leveraging expert stylists and advanced AI algorithms based on extensive data [6]

Financial Data and Key Metrics Changes - Q3 revenue reached $325 million, reflecting a 0.7% year-over-year increase and a 4.1% quarter-over-quarter increase [20] - Adjusted EBITDA for Q3 was $11 million, representing a margin of approximately 3.4%, up 130 basis points year-over-year but down 170 basis points quarter-over-quarter [22] - Gross margin for the quarter was 44.2%, down 130 basis points year-over-year and down 30 basis points quarter-over-quarter [21] - Revenue per active client was $542, up 3.2% year-over-year and up 1% quarter-over-quarter [20] Business Line Data and Key Metrics Changes - The women's business and overall fixed channel returned to revenue growth, while the men's business and freestyle channel also saw revenue growth [7] - Average Order Value (AOV) grew by 10% year-over-year, with improvements in items per fix, keep rate, and Average Unit Retail (AUR) [8] - The athleisure category saw over 30% growth year-over-year, with notable demand for wide leg denim and spring transitional sweaters in women's and fleece and knit tops in men's [12] Market Data and Key Metrics Changes - Active clients at the end of Q3 totaled 2.4 million, down 10.6% year-over-year and down 0.8% quarter-over-quarter, marking the lowest sequential decline in three years [20][13] - New client growth has been achieved for two consecutive quarters, with new clients spending more, as evidenced by high 90-day Lifetime Value (LTV) metrics [13] Company Strategy and Development Direction - The company is executing a three-phased transformation strategy, having completed the rationalize and build phases and now entering the growth phase [9][13] - Focus on enhancing client engagement features, deepening stylist relationships, and offering a stronger assortment with more fresh styles [10] - The company aims to position itself as the retailer of choice for apparel and accessories by delivering a personalized shopping experience [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges significant external challenges, including a dynamic macroeconomic environment and pressure on consumer discretionary spending [15] - The company does not expect significant cost impacts from tariffs for the remainder of Q4 but anticipates potential impacts in FY 2026 [15][24] - Confidence in the foundation built and the ability to navigate uncertainties while focusing on long-term profitable growth [27] Other Important Information - The company generated $16 million in free cash flow in Q3 and ended the quarter with $242 million in cash and no debt [22] - The outlook for Q4 includes projected revenue between $298 million and $300 million, with adjusted EBITDA expected between $3 million and $7 million [24] Q&A Session Summary Question: Insights on core consumer behavior and keep rates - Management noted strong performance in Q3 driven by AOV growth and positive client engagement, with larger fixes resonating well with clients [30][32] Question: Potential share gain opportunities in the current macro environment - Management believes the current macro environment presents an opportunity for share gain, emphasizing the adaptability of their service to client needs [52][54] Question: Sustainability of AOV increases - AOV growth is attributed to larger fixes and is expected to continue, although tougher year-over-year comparisons are anticipated in FY 2026 [72] Question: Need for increased ad spend to drive new customer growth - Management does not anticipate needing to increase ad spend to achieve active client growth, citing improvements in client re-engagement and dormancy trends [75]

Financial Data and Key Metrics Changes - Q3 revenue reached $325 million, reflecting a 0.7% year-over-year increase and a 4.1% quarter-over-quarter increase [20] - Adjusted EBITDA for the quarter was $11 million, representing a margin of approximately 3.4%, up 130 basis points year-over-year but down 170 basis points quarter-over-quarter [22] - Gross margin was 44.2%, down 130 basis points year-over-year and down 30 basis points quarter-over-quarter [21] - Revenue per active client for the quarter was $542, up 3.2% year-over-year and up 1% quarter-over-quarter [20] Business Line Data and Key Metrics Changes - The women's business and overall fixed channel returned to revenue growth, while the men's business and freestyle channel also saw growth [6] - Average Order Value (AOV) grew by 10% year-over-year, with improvements in items per fix, keep rate, and Average Unit Retail (AUR) [7] - Notable growth in athleisure for both women's and men's clients, with sneakers up 35% year-over-year [11] Market Data and Key Metrics Changes - Active clients at the end of Q3 were 2.4 million, down 10.6% year-over-year and down 0.8% quarter-over-quarter, marking the lowest sequential decline in three years [20] - New client growth has been achieved for two consecutive quarters, with new clients spending more, as evidenced by the highest 90-day Lifetime Value (LTV) in three years [12] Company Strategy and Development Direction - The company is transitioning from the build phase to the growth phase of its transformation strategy, focusing on cementing its position as a retailer of choice for apparel and accessories [12] - Strategic investments are being made in client acquisition and reengagement, as well as strengthening the product assortment [23] - The company aims to leverage its unique value proposition and AI capabilities to gain market share [13][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating external challenges, including a dynamic macroeconomic environment and tariff pressures [14] - The company does not expect significant cost impacts from tariffs for the remainder of the fourth quarter [15] - Future guidance indicates a stronger Q4 than previously anticipated, with total revenue expected between $298 million and $300 million [24] Other Important Information - The company generated $16 million of free cash flow in Q3 and ended the quarter with $242 million in cash and no debt [22] - Inventory management has improved, with net inventory flat year-over-year and up 4.4% quarter-over-quarter [21] Q&A Session Summary Question: Insights on core consumer behavior and guidance for Q4 - Management noted strong performance in AOV and engagement metrics, with larger fixes resonating well with clients [32][34] - They expect a slight sequential decline in active clients due to normal seasonality but remain confident in revenue growth [37] Question: Potential share gain opportunities in the current macro environment - Management believes the current macro environment presents an opportunity for share gain, emphasizing the adaptability of their service [52] - They do not anticipate price increases during the fiscal year and are focused on creating value for clients [54] Question: Sustainability of AOV increases - AOV growth is driven by larger fixes and a focus on client engagement, with expectations for continued strength [70] - Tougher comparisons are anticipated in FY 2026 due to the strong performance in the current year [71] Question: Active client growth and advertising spend - Management does not foresee the need to increase ad spend to achieve active client growth, citing improvements in client reengagement [74] - They are focused on quality client acquisition and maximizing lifetime value [60]

Core Insights - Stitch Fix reported a quarterly loss of six cents per share, outperforming the analyst consensus estimate of losses of 11 cents per share [1] - Quarterly revenue reached $325.02 million, exceeding the consensus estimate of $314.44 million [1] Financial Performance - The company experienced a year-over-year revenue growth, with CEO Matt Baer highlighting the strength of the Stitch Fix value proposition and disciplined execution of strategy [2] - Active clients totaled 2,353,000, reflecting a decrease of 18,000, or 0.8%, quarter-over-quarter, and a decrease of 280,000, or 10.6%, year-over-year [5] - Net revenue per active client (RPAC) was $542, marking a 3.2% increase year-over-year [5] - Gross margin stood at 44.2%, down 130 basis points year-over-year, primarily due to lower product margins [5] Future Outlook - For the fourth quarter, the company anticipates revenue between $298 million and $303 million, surpassing the estimate of $288.57 million [3] - Stitch Fix raised its fiscal 2025 revenue guidance from a range of $1.23 billion to $1.24 billion to a new range of $1.25 billion to $1.26 billion, compared to the $1.23 billion estimate [3] Stock Performance - Following the earnings report, Stitch Fix stock was down 0.42% at $4.68 in extended trading [3]

Exhibit 99.1 Stitch Fix Announces Third Quarter of Fiscal Year 2025 Financial Results SAN FRANCISCO, June 10, 2025 (GLOBE NEWSWIRE) -- Stitch Fix, Inc. (NASDAQ: SFIX), the leading online personal styling service, today announced its financial results for the third quarter of fiscal year 2025, ended May 3, 2025. "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 ...

Core Insights - Stitch Fix, Inc. reported strong third quarter results for fiscal year 2025, achieving year-over-year revenue growth and exceeding expectations, attributed to the strength of its value proposition and disciplined execution of strategy [2][3] Financial Highlights - Net revenue for the third quarter was $325 million, a 0.7% increase year-over-year [6] - Active clients decreased to 2.353 million, down 0.8% quarter-over-quarter and 10.6% year-over-year [6] - Revenue per active client (RPAC) increased to $542, a 3.2% rise year-over-year [6] - Gross margin was 44.2%, a decrease of 130 basis points year-over-year, primarily due to lower product margins [6] - The company reported a net loss of $7.4 million, with a net loss margin of 2.3% and diluted loss per share of $0.06 [6][19] Financial Outlook - For Q4 2025, net revenue is projected to be between $298 million and $303 million, reflecting a year-over-year decline of 6.7% to 5.2% [4] - The full fiscal year 2025 net revenue is expected to be between $1.254 billion and $1.259 billion, representing a year-over-year decline of 6.2% to 5.9% [5] - Adjusted EBITDA for Q4 2025 is anticipated to be between $3 million and $7 million, with a margin of 1.0% to 2.3% [4] Cash Flow and Liquidity - The company generated $20.5 million in net cash from operating activities and reported free cash flow of $16 million for the third quarter [6] - As of the end of the quarter, Stitch Fix had $242.1 million in cash, cash equivalents, and investments, with no debt [6] Operational Metrics - The company expects fourth quarter gross margin to be at the lower end of the 44% to 45% range, with full fiscal year 2025 gross margin projected to be in the middle of that range [7] - Advertising expenses as a percentage of revenue for the full fiscal year 2025 are expected to be at the high end of the 8% to 9% range [7]

Core Insights - Stitch Fix, Inc. (SFIX) is anticipated to report a year-over-year decline in revenues for Q3 fiscal 2025, with the Zacks Consensus Estimate at $315.3 million, reflecting a 2.3% decrease from the previous year [1] - The company is expected to report a narrower loss per share of 12 cents, compared to a loss of 15 cents in the same quarter last year [2] - The company has experienced a trailing four-quarter earnings surprise of 48.9% on average, with a significant beat of 54.6% in the last reported quarter [2] Performance Influencers - A challenging macroeconomic environment, including shifts in customer demand and tariff-related issues, is likely to negatively impact Stitch Fix's quarterly performance [3] - The company faces difficulties in customer acquisition and retention, with a projected decline of 10.8% in active clients year-over-year for Q3 [4] - Competition from major retailers and economic pressures are additional challenges to the company's growth [3] Financial Projections - Management previously projected revenues between $311 million and $316 million, indicating a year-over-year decline of 3.6% to 2.1% [4] - Adjusted EBITDA is expected to be between $7 million and $10 million, with a margin of 2.3% to 3.2% [4] - The gross margin is anticipated to increase by 90 basis points year-over-year to 44.5%, benefiting from improved product margins [6] Strategic Initiatives - Stitch Fix is enhancing customer experiences through AI-driven personalization and reimagining product assortments to align with evolving client preferences [5] - The company's Freestyle drive is providing a distinct shopping experience, which is seen as a positive development [5] - Management is focused on cost efficiencies, which are likely to contribute to improved profitability [6]

Core Insights - Stitch Fix, Inc. (SFIX) has shown strong upward momentum, trading above its 50-day and 200-day simple moving averages, closing at $4.17, which reflects positive market sentiment and investor confidence in its financial health and growth prospects [1][3] Performance Overview - Over the past year, SFIX shares have surged by 81.3%, significantly outperforming the Zacks Retail-Apparel and Shoes industry's decline of 2.1%, as well as the broader Retail-Wholesale sector and S&P 500 index growth of 16.2% and 9.3%, respectively [3] Strategic Initiatives - The company's client-first strategy has improved customer engagement and loyalty, with requests for the same stylist reaching a five-year high, indicating increased trust [6] - Personalization efforts have resulted in six consecutive quarters of growth in average order value (AOV), supported by better alignment between customer preferences and product offerings [7] - The focus on exclusive in-house brands and expansion into underpenetrated segments, particularly in men's apparel, is enhancing competitive positioning and margin control [8] Challenges - Despite the increase in AOV, Stitch Fix is struggling with client retention, as the decline in the active user base poses risks to long-term revenue potential [9] - The company projects fiscal third-quarter revenues between $311 million and $316 million, reflecting a year-over-year decline of 3.6-2.1%, and expects full-year revenues between $1.23 billion and $1.24 billion, a decrease of 6.9-5.8% [10] Conclusion - Stitch Fix is making progress through AI-driven personalization and operational improvements, contributing to strong recent price performance. However, challenges with a declining active client base and intense market competition may hinder sustained revenue growth [11]

Core Insights - Stitch Fix, Inc. will release its financial results for the third quarter of fiscal year 2025 on June 10, 2025, after market close [1] - A conference call to discuss the financial results and outlook will be held at 2:00 p.m. PT / 5:00 p.m. ET, hosted by the CEO and CFO [1] Company Overview - Stitch Fix is a leading online personal styling service that helps clients discover styles that fit their preferences, making it easier to express personal style without extensive shopping [3] - The company combines expert stylists with advanced AI and recommendation algorithms to cater to individual tastes, offering a mix of exclusive and national brands [3] - Founded in 2011 and headquartered in San Francisco, Stitch Fix aims to solve the challenge of finding well-fitting and stylish clothing [3]