Core Viewpoint - Stitch Fix, Inc. reported first-quarter fiscal 2025 results with both revenue and earnings exceeding Zacks Consensus Estimates, although revenue declined year-over-year while earnings improved [1][4]. Financial Performance - The company recorded an adjusted loss of $0.05 per share, better than the expected loss of $0.14 and the loss of $0.22 from the previous year [4]. - Net revenues were $318.8 million, surpassing the estimate of $306 million but down 12.6% from the same quarter last year due to a decrease in active clients [4]. - Active clients numbered 2,434,000, reflecting an 18.6% year-over-year decline, while average revenue per active client increased by 4.9% to $531 [5]. Margins and Expenses - Gross profit decreased by 9% to $144.8 million, but gross margin improved by 180 basis points to 45.4% due to better transportation leverage and product margins [6]. - Selling, general and administrative expenses (SG&A) fell by 18.1% to $153.8 million, with SG&A as a percentage of net revenues decreasing to 48.2% [7]. - Adjusted EBITDA was $13.5 million, up from $8.6 million in the prior year, with an adjusted EBITDA margin improvement of 180 basis points to 4.2% [8]. Cash and Equity Overview - At the end of the fiscal first quarter, the company had cash and cash equivalents of $137.2 million, short-term investments of $116.1 million, and no debt, with net inventory at $119.1 million and shareholders' equity of $190.5 million [10]. Fiscal 2025 Guidance - For Q2 fiscal 2025, revenues are expected to be between $290 million and $300 million, indicating a 9-12% year-over-year decline, with adjusted EBITDA projected between $8 million and $13 million [11]. - The full fiscal 2025 revenue outlook has been raised to between $1.14 billion and $1.18 billion, compared to the previous guidance of $1.11 billion to $1.16 billion, reflecting a 10-13% year-over-year decline [12].

Group 1 - Michael Wiggins De Oliveira is an inflection investor, focusing on buying undervalued companies at pivotal moments when their profitability is expected to increase significantly over the next year [1] - The investment strategy emphasizes technology and the Great Energy Transition, including uranium, with a concentrated portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] - Michael has over 10 years of experience analyzing companies in the tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [2] Group 2 - Michael leads the investing group Deep Value Returns, which offers insights through a concentrated portfolio of value stocks, timely updates on stock picks, and a weekly webinar for live advice [3] - The Deep Value Returns community is described as active, vibrant, and supportive, providing accessible chat options for both new and experienced investors [3]

Core Strategy and Vision - The company aims to reinvigorate its business and return to growth by the end of FY 2026, focusing on client engagement, inventory freshness, and AI optimization [1] - The CEO emphasized the vision to become the most client-centric, personalized shopping experience, with a focus on reimagining the client experience and improving acquisition economics [2] Client Experience and Engagement - The company has increased the "newness" of its product offerings by 40% in Q1, aligning merchandise with current trends and customer preferences to drive repeat business [3] - Clients can now receive up to eight items per shipment, offering greater flexibility and a broader selection tailored to individual preferences, supported by an AI-powered inventory tool [5] - The company has adopted more targeted, personalized marketing strategies, including tailored promotions and rotating holiday offers, to better serve clients during high-traffic periods [6][7] AI and Data Analytics - AI is a core part of the company's strategy, integrated into every facet of the business to drive engagement and improve retention through personalized styling recommendations and inventory assortment [9] - The company has seen a 17% year-over-year increase in client reactivations, attributed to improvements in the user experience and personalized marketing approach [10] Financial Performance and Growth Outlook - Despite a 12.6% year-over-year revenue decrease to $318.8 million and a 3% decline in active clients (2,434,000) in Q1, the CEO remains optimistic about the company's growth strategy [11] - The company is on track to successfully transform its business and return to growth by the end of FY 2026 [2][12]

Financial Data and Key Metrics Changes - The company reported net revenue of $318.8 million, which is a 13% decrease year-over-year but flat quarter-over-quarter [27] - Adjusted EBITDA for Q1 was $13.5 million, representing a margin of approximately 4.2%, up 180 basis points year-over-year and 120 basis points quarter-over-quarter [33] - Gross margin for the quarter was 45.4%, an increase of 180 basis points year-over-year and 80 basis points quarter-over-quarter [29] - Contribution margin was approximately 34%, marking the third consecutive quarter above the historical range of 25% to 30% [30] Business Line Data and Key Metrics Changes - The penetration of newness in inventory increased by more than 40% in Q1, contributing to a year-over-year increase in Average Unit Retail (AUR) of 6% [13][28] - Sales of wide-leg and boot cut styles increased by 250% from the previous year, indicating strong demand for fresh styles [14] - The company introduced flexibility in its offerings, allowing clients to receive up to eight items in a Fix, which has led to clients requesting nearly 40% more items on average [17] Market Data and Key Metrics Changes - Net active clients ended the quarter at 2.4 million, representing the lowest sequential decline in active client count in two years, down 19% year-over-year and down 3% quarter-over-quarter [29] - Revenue per active client for the quarter was $531, up 5% year-over-year and relatively flat quarter-over-quarter [29] Company Strategy and Development Direction - The company is focused on returning to revenue growth by the end of FY '26 and has raised its annual guidance [10][34] - The strategy includes improving inventory quality, enhancing client experience, and embedding retail best practices across the business [11][10] - The company is leveraging AI and data science to enhance client engagement and improve inventory management [24][75] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing transformation strategy and the positive results seen in Q1, indicating that the strategy is working [38] - The company expects to see continued improvement in active client counts and revenue growth, with a focus on sustainable, profitable growth [26][34] - Management highlighted the importance of engaging clients through personalized marketing and promotional capabilities [19][22] Other Important Information - The company ended Q1 with net inventory of $119.1 million, down 26% year-over-year and up 22% quarter-over-quarter [33] - The company generated $9.9 million of free cash flow in Q1 and ended the quarter with $253 million in cash and no debt [33] Q&A Session Summary Question: Key contributors to stronger than expected spend per client - Management highlighted improvements in inventory and assortment, increased flexibility in Fix offerings, and optimized pricing architecture as key contributors [41][43][45] Question: Impact of private brands on the business - Management stated that private brands account for around 40% to 50% of total sales and have outperformed market brands in terms of keep rate and margins [58][60] Question: Progress with the active client file - Management emphasized the importance of acquiring healthy clients and enhancing engagement to increase revenue per active client [61][63] Question: Trends in reactivations - Management reported a 17% year-over-year increase in reactivations, indicating successful efforts to re-engage former clients [87][88]

SFIX: NASDAQ / December 10, 2024 1 Safe harbor statement This presentation is provided for informational purposes only and should not be construed as an oer, commitment, promise or obligation on behalf of Stitch Fix, Inc. ("Stitch Fix" or the "Company") to sell securities or deliver any products, services, functionalities or other features. This presentation contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact could be ...

Exhibit 99.1 (1) STĪTCH FĪX Stitch Fix Announces First Quarter of Fiscal Year 2025 Financial Results SAN FRANCISCO, December 10, 2024 (GLOBE NEWSWIRE) -- Stitch Fix, Inc. (NASDAQ: SFIX), the leading online personal styling service, today announced its financial results for the first quarter of fiscal year 2025, ended November 2, 2024. "Our fiscal year is off to a strong start. We exceeded our expectations in the first quarter on the top and bottom lines," said Matt Baer, Chief Executive Officer, Stitch Fix. ...

SAN FRANCISCO, Nov. 19, 2024 (GLOBE NEWSWIRE) -- Stitch Fix, Inc. (NASDAQ:SFIX), the leading online personal styling service, today announced that it will release financial results for its first quarter fiscal year 2025 ended November 2, 2024 after market close on Tuesday, December 10, 2024. Following this, Stitch Fix will hold a conference call at 2:00 p.m. PT / 5:00 p.m. ET to discuss its financial results and outlook. The call will be hosted by Matt Baer, CEO, and David Aufderhaar, CFO. A live webcast of ...

A month has gone by since the last earnings report for Stitch Fix (SFIX) . Shares have added about 26.9% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Stitch Fix due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. SFIX’s Q4 Loss Beats Estimates, Client-Centric Innovat ...

Stitch Fix shares are down 97% from all-time highs. During the peak days of the COVID-19 pandemic, people around the world increasingly adopted a work-fromhome environment and began finding new ways to entertain themselves when duty wasn't calling. One such area was the stock market. Stocks across all industry sectors ebbed and flowed for reasons completely detached from reality. In many ways, the stock market became a digital casino, and many unsuspecting investors learned a hard lesson: Stocks don't go up ...

A couple of weeks ago, Stitch Fix, Inc. (SFIX) released its fourth-quarter fiscal 2024 results, igniting discussions among investors regarding the stock's future trajectory. With its latest earnings now available, investors are weighing the decision to either boost their investments or maintain their current holdings. Analyzing Stitch Fix's Mixed Performance SFIX shares have declined 21.1% in the past month against the industry's 9.1% growth. Stitch Fix faces a significant challenge with its declining activ ...