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 $312.1 million and $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 $6.6 million and $12.9 million, respectively, compared to losses of $35.0 million and $61.1 million for the same periods in the prior year[89]. - Revenue decreased by $18.3 million (5.5%) and $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 $15.9 million, compared to $4.4 million for the three months ended January 27, 2024[95]. - Free Cash Flow for the six months ended February 1, 2025, was $(9.5) million, slightly worse than $(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 $537 as of February 1, 2025, reflecting a year-over-year increase of 4.3% from $515[99]. Cost Management - Selling, general, and administrative expenses (SG&A) decreased by $33.6 million (18.5%) and $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 $0.2 million and $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 $113.2 million in cash and cash equivalents and $116.6 million in investments as of February 1, 2025[120]. - The company entered into a $50.0 million revolving credit facility on December 4, 2023, with $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 $1.9 million, with a net loss of $12.9 million adjusted by non-cash charges of $45.5 million[127]. - Cash used in investing activities from continuing operations for the six months ended February 1, 2025, was $39.0 million, primarily due to purchases of securities available-for-sale totaling $96.6 million[129]. - Cash used in financing activities from continuing operations for the six months ended February 1, 2025, was $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].