Stitch Fix (NASDAQ:SFIX) Shares of the apparel company slid more than 10% after Stitch Fix reported a wider-than-expected loss for its second quarter. The company lost 58 cents per share, while analysts surveyed by Refinitiv had been expecting a loss of 34 cents per share. Stitch Fix did report its first quarter of positive free cash flow in more than a year.
The company also reported net revenue of $412.1 million, a decrease of 20% year over year; Active clients of 3,574,000, a decrease of 445,000 or 11% year over year
Net revenue per active client (RPAC) of $516, a decrease of 6.0% year over year.
Stitch Fix Interim CEO Katrina Lake said, “This quarter, we continued to execute on our plan to achieve profitability and preserve liquidity, delivering adjusted EBITDA of $3.8 million, which is at the high end of our guidance range. Looking forward, we will continue to invest in the advanced data science and machine learning capabilities combined with personalized styling expertise that have set us apart for more than a decade.
This strategic re-focusing on our styling-first model will deliver clarity to the client experience and drive efficiency in our marketing spend.
“We’re proud to have helped millions of clients find clothes that make them feel their best, and we’re confident that this path will ensure that we’re attracting long-term clients to Stitch Fix and paving the way for a return to growth.”
SFIX shares tumbled 52 cents, or 10.5% to $4.45.
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