Stitch Fix Announces Second Quarter of Fiscal Year 2025 Financial Results

Core Insights - Stitch Fix, Inc. reported financial results for the second quarter of fiscal year 2025, showing a net revenue of $312.1 million, a decrease of 5.5% year-over-year [7] - The company is focused on enhancing client experience through improved assortment, flexibility, and stronger relationships between clients and stylists [2] Financial Highlights - For Q2 FY 2025, net revenue was $312.1 million, with a gross margin of 44.5%, an increase of 110 basis points year-over-year [7] - Active clients decreased to 2,371,000, down 63,000 quarter-over-quarter and 434,000 year-over-year [7] - Adjusted EBITDA for Q2 FY 2025 was $15.9 million, with an adjusted EBITDA margin of 5.1% [7] Financial Outlook - The updated financial outlook for Q3 FY 2025 anticipates net revenue between $311 million and $316 million, representing a year-over-year decline of 3.6% to 2.1% [4] - The full fiscal year 2025 net revenue is projected to be between $1.225 billion and $1.240 billion, reflecting a year-over-year decline of 8.4% to 7.3% [5] - The company expects gross margin for both Q3 and the full fiscal year 2025 to be approximately 44% to 45% [6] Operational Metrics - Net revenue per active client (RPAC) increased to $537, a rise of 4.3% year-over-year [7] - The company ended the quarter with $229.8 million in cash and cash equivalents, with no debt [7] Discontinued Operations - The UK business operations were ceased in Q1 FY 2024 and are reported as discontinued operations in the financial statements [9]