Stitch Fix(SFIX)2025-03-12 20:15Financial Performance - For the three and six months ended February 1, 2025, the company reported net revenue of 630.9 million, representing year-over-year decreases of 5.5% and 9.2%, respectively[87]. - Net loss from continuing operations for the three and six months ended February 1, 2025, was 12.9 million, respectively, compared to losses of 61.1 million for the same periods in the prior year[89]. - Revenue decreased by 64.3 million (9.2%) for the three and six months ended February 1, 2025, respectively, primarily due to a 15.5% decrease in active clients[114]. - Adjusted EBITDA for the three months ended February 1, 2025, was 4.4 million for the three months ended January 27, 2024[95]. - Free Cash Flow for the six months ended February 1, 2025, was (9.2) million for the same period last year[96]. Client Metrics - The number of active clients decreased to approximately 2,371,000 as of February 1, 2025, down 15.5% from 2,805,000 active clients as of January 27, 2024[87][98]. - Net revenue per active client increased to 515[99]. Cost Management - Selling, general, and administrative expenses (SG&A) decreased by 67.6 million (18.3%) for the three and six months ended February 1, 2025, respectively[116]. - SG&A as a percentage of revenue decreased to 47.4% and 47.8% for the three and six months ended February 1, 2025, compared to 54.9% and 53.1% for the same periods in the prior year[117]. - The company continues to evaluate operating costs and optimize its marketing strategy to position itself for profitability[92]. Restructuring and Charges - The company recorded additional restructuring charges of 1.2 million for the three and six months ended February 1, 2025, as part of the ongoing restructuring plan[90]. - The company is focused on improving client retention and conversion rates to address challenges in acquiring and retaining active clients[88]. Economic Environment - The macroeconomic environment, including inflation and recessionary concerns, poses risks to consumer discretionary spending and overall business performance[100]. Cash and Investments - The company had 116.6 million in investments as of February 1, 2025[120]. - The company entered into a 31.3 million in excess availability as of February 1, 2025[121]. - Cash used in operating activities from continuing operations for the six months ended February 1, 2025, was 12.9 million adjusted by non-cash charges of 39.0 million, primarily due to purchases of securities available-for-sale totaling 8.2 million, primarily for tax withholding payments related to restricted stock units[131]. Other Financial Information - Interest income increased by 13.7% for the six months ended February 1, 2025, compared to the same period last year[113]. - The company made no repurchases of Class A common stock during the three and six months ended February 1, 2025, with $120.0 million remaining available under the share repurchase program[125]. - The company plans to repatriate remaining UK cash into the U.S. within 12 months, which may be subject to taxes and local restrictions[120]. - There were no material changes to contractual obligations and other commitments during the three months ended February 1, 2025[132]. - There have been no significant changes to critical accounting policies and estimates disclosed in the 2024 Annual Report[134]. - No material changes in market risk were reported during the three months ended February 1, 2025[135].