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Stitch Fix Inc. (SFIX+3.68%) has submitted its 10-Q filing for the quarterly period ended February 1, 2025.
The filing includes financial statements for the quarter, showing a decrease in net revenue to $312.1 million from $330.4 million in the same quarter the previous year. This represents a year-over-year decrease of 5.5%, attributed to challenges in acquiring and retaining active clients.
Gross profit for the quarter was $138.9 million, down from $143.5 million in the previous year. The gross margin increased to 44.5% from 43.4% due to higher average order values and improved product margins.
Selling, general, and administrative expenses decreased to $147.9 million from $181.5 million, primarily due to lower compensation and benefits expenses, lower stock-based compensation, and lower facilities costs.
Net loss from continuing operations for the quarter was $6.6 million, compared to a net loss of $35.0 million in the previous year. The improvement is attributed to reduced operating expenses.
Cash used in operating activities from continuing operations was $1.9 million for the six months ended February 1, 2025, compared to $1.7 million in the previous year. The change was primarily due to a decrease in net operating assets and liabilities.
Stitch Fix reported having $113.2 million in cash and cash equivalents as of February 1, 2025, with an additional $116.6 million in investments.
The company continues to face challenges in client acquisition and retention, which have negatively impacted revenue. The company remains focused on improving client experience and enhancing client engagement.
Stitch Fix announced the closure of two fulfillment centers in fiscal 2024 and a restructuring plan intended to reduce operating costs. The company recorded $0.2 million in restructuring charges for the quarter.
The filing also details the company's credit facility with Citibank, N.A., which provides for a $50.0 million revolving credit facility maturing on December 4, 2026.
Stitch Fix's board authorized a share repurchase program of up to $150.0 million, with $120.0 million remaining available under the authorization as of February 1, 2025.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Stitch Fix Inc. quarterly 10-Q report dated March 12, 2025. To report an error, please email earnings@qz.com.