Stitch Fix Stock Plunges on Widening Losses

Core Insights - Stitch Fix shares experienced a significant decline following the announcement of widening losses and weaker revenue projections than anticipated by analysts [1][4] - The company reported a fiscal fourth-quarter loss of $36.5 million, an increase from $28.66 million the previous year, with revenue dropping 12% year-over-year to $319.55 million, both figures falling short of analyst expectations [2] - Stitch Fix's active subscriber base has decreased to just over 2.5 million, down nearly 5% from the previous quarter and nearly 20% year-over-year [2] Financial Performance - The reported loss of $36.5 million for the fiscal fourth-quarter represents a widening from the previous year's loss of $28.66 million [2] - Revenue for the quarter was $319.55 million, reflecting a 12% decline compared to the same quarter last year [2] Future Outlook - For the first quarter, Stitch Fix anticipates revenue between $303 million and $310 million, which is below the consensus projection of $324 million [3] - For the full fiscal year, the company projects revenue of $1.11 billion to $1.16 billion, a decrease from $1.34 billion in fiscal 2024 and lower than the $1.3 billion expected by analysts [3] - CEO Matt Baer expressed confidence in the company's path to return to revenue growth by the end of fiscal year 2026, despite acknowledging the challenges ahead [4]