Stitch Fix(US:SFIX)2025-12-05 21:15Financial Performance - For the three months ended November 1, 2025, the company reported revenue of $342.1 million, a year-over-year increase of 7.3%[79] - The net loss from continuing operations for the three months ended November 1, 2025, was $6.4 million, compared to a net loss of $6.3 million for the same period in the prior year[81] - Adjusted EBITDA for the three months ended November 1, 2025, was $13.4 million, slightly down from $13.5 million for the same period in the prior year[85] - Free Cash Flow for the three months ended November 1, 2025, was $5.6 million, down from $9.9 million for the same period in the prior year[86] - Revenue for the three months ended November 1, 2025, increased by $23.3 million, or 7.3%, compared to the same period in the prior year, primarily due to a 5.3% improvement in net revenue per active client[106] Client Metrics - The number of active clients decreased to approximately 2,307,000 as of November 1, 2025, representing a year-over-year decline of 5.2%[79] - Net revenue per active client increased to $559, reflecting a year-over-year increase of 5.3%[90] Expenses - Marketing expenses for the three months ended November 1, 2025, were $33.9 million, compared to $30.0 million for the same period in the prior year[94] - Cost of goods sold for the same period increased by 10.8% to $192.8 million, resulting in a gross margin decrease of 180 basis points to 43.6%[105][107] - Selling, general, and administrative expenses (SG&A) rose by $4.1 million to $157.9 million, with SG&A as a percentage of revenue decreasing to 46.2% from 48.2% year-over-year[108][109] Cash Flow and Liquidity - Cash provided by operating activities from continuing operations was $10.9 million, down from $14.3 million in the same period last year[118][120] - As of November 1, 2025, the company had $114.5 million in cash and cash equivalents and $129.7 million in investments[112] - The company entered into a $50.0 million revolving credit facility on December 4, 2023, with $31.3 million in excess availability as of November 1, 2025[113] - Cash used in investing activities was $5.7 million for the three months ended November 1, 2025, compared to $35.7 million in the prior year[121][122] Tax and Market Risk - The effective tax rate for the three months ended November 1, 2025, was (0.9)%, compared to (2.6)% for the same period in the prior year[110][111] - There were no material changes in market risk compared to the previous fiscal year[128] Strategic Focus - The company anticipates that macroeconomic uncertainty may negatively impact consumer discretionary spending in the remainder of fiscal 2026[91] - The company continues to focus on improving client retention and acquisition strategies to enhance overall client experience[80] - The company leverages AI and data science to optimize inventory management and enhance client engagement[92] Share Repurchase - The company repurchased 2,302,141 shares of Class A common stock for $30.0 million, with $120.0 million remaining under the share repurchase program[117]