Stitch Fix(SFIX) - 2025 Q2 - Quarterly Results

Financial Performance - Net revenue for Q2 FY2025 was $312.1 million, a decrease of 5.5$15.9 million, with an Adjusted EBITDA margin of 5.1%[7] - The financial outlook for Q3 FY2025 projects net revenue between $311 million and$316 million, representing a year-over-year decline of 3.6% to 2.1%[4] - The full fiscal year 2025 net revenue is expected to be between $1.225 billion and$1.240 billion, reflecting a year-over-year decline of 8.4% to 7.3%[5] - Gross profit for the six months ended February 1, 2025, was $283.7 million, with a gross margin of 45.0$302.6 million and 43.5% for the same period last year[17] - The company reported a net loss from continuing operations of $(12.9) million for the six months ended February 1, 2025, compared to$(61.1) million for the same period last year[19] - The company reported a comprehensive loss of $(12.8) million for the six months ended February 1, 2025, compared to$(72.0) million for the same period last year[17] Client Metrics - Active clients decreased to 2,371,000, down 63,000 or 2.6% quarter-over-quarter, and down 434,000 or 15.5% year-over-year[7] - As of February 1, 2025, the number of active clients is 2,371,000, a decrease from 2,434,000 on November 2, 2024[24] - The active client count has declined by approximately 15.4% from 2,805,000 on January 27, 2024[24] Revenue per Active Client - Net revenue per active client (RPAC) increased to $537, up 4.3$537 in the latest quarter, up from $531 in the previous quarter[24] - The net revenue per active client has shown a consistent upward trend, increasing from$515 in January 2024 to $537 in February 2025[24] - Net revenue per active client is calculated based on net revenue over the preceding four fiscal quarters divided by the number of active clients[26] Cash and Debt Position - The company ended Q2 FY2025 with$229.8 million in cash, cash equivalents, and investments, with no debt[7] - Cash and cash equivalents at the end of the period were $113.2 million, down from$227.5 million at the beginning of the period[19] Operating Performance - The operating loss for the three months ended February 1, 2025, was $(9.0) million, significantly improved from$(38.0) million in the prior year[17] - Adjusted EBITDA for the six months ended February 1, 2025, was $29.4 million, compared to$13.1 million for the same period last year[21] - Free Cash Flow for the six months ended February 1, 2025, was $(9.5) million, compared to$(9.2) million for the same period last year[23] - The company experienced a net cash used in operating activities from continuing operations of $(1.9) million for the six months ended February 1, 2025[19] Future Outlook - Stitch Fix aims to return to revenue growth during fiscal year 2026, focusing on enhancing client experience and engagement[13] - The company anticipates a gross margin of approximately 44% to 45% for both Q3 and the full fiscal year 2025[5] - Gross margin for Q2 FY2025 was 44.5%, an increase of 110 basis points year-over-year[7]