Stitch Fix(SFIX) ZACKS·2024-12-11 15:16Core Viewpoint - Stitch Fix, Inc. reported first-quarter fiscal 2025 results with both revenue and earnings exceeding Zacks Consensus Estimates, although revenue declined year-over-year while earnings improved [1][4]. Financial Performance - The company recorded an adjusted loss of $0.05 per share, better than the expected loss of $0.14 and the loss of $0.22 from the previous year [4]. - Net revenues were $318.8 million, surpassing the estimate of $306 million but down 12.6% from the same quarter last year due to a decrease in active clients [4]. - Active clients numbered 2,434,000, reflecting an 18.6% year-over-year decline, while average revenue per active client increased by 4.9% to $531 [5]. Margins and Expenses - Gross profit decreased by 9% to $144.8 million, but gross margin improved by 180 basis points to 45.4% due to better transportation leverage and product margins [6]. - Selling, general and administrative expenses (SG&A) fell by 18.1% to $153.8 million, with SG&A as a percentage of net revenues decreasing to 48.2% [7]. - Adjusted EBITDA was $13.5 million, up from $8.6 million in the prior year, with an adjusted EBITDA margin improvement of 180 basis points to 4.2% [8]. Cash and Equity Overview - At the end of the fiscal first quarter, the company had cash and cash equivalents of $137.2 million, short-term investments of $116.1 million, and no debt, with net inventory at $119.1 million and shareholders' equity of $190.5 million [10]. Fiscal 2025 Guidance - For Q2 fiscal 2025, revenues are expected to be between $290 million and $300 million, indicating a 9-12% year-over-year decline, with adjusted EBITDA projected between $8 million and $13 million [11]. - The full fiscal 2025 revenue outlook has been raised to between $1.14 billion and $1.18 billion, compared to the previous guidance of $1.11 billion to $1.16 billion, reflecting a 10-13% year-over-year decline [12].