Stitch Fix (NASDAQ:SFIX) reported revenue fell 22% in FQ4 from a year ago to $375.8M. Active clients were down 6% quarter-over-quarter and 13% lower year-over-year to 3.30M. Net revenue per active client was $497 vs. $546 a year ago.
Adjusted EBITDA came in at $10.4M to top the retailer’s guidance range. SFIX’s net loss for the quarter narrowed to $28.7M from $96.3M a year ago. Free cash flow was $17.7M vs. -$46.7M a year ago.
Stitch Fix (SFIX) confirmed that it ended its consultation period on the UK business and made the decision to exit the market and wind down operations. SFXI anticipates the UK business will be reported as a discontinued operation in the first quarter of FY24.
Looking ahead, Stitch Fix (SFIX) expects Q1 revenue of $335M to $365M for the U.S. business vs. $402M consensus and adjusted EBITDA of $2M to $7M. FY24 revenue of $1.30B to $1.37B is anticipated vs. $1.59B consensus. “Our current business results are not indicative of what I believe this Company can deliver, and I am committed to realizing the full potential of Stitch Fix and driving long-term, profitable growth,” updated CEO Matt Baer.
Shares of Stitch Fix (SFIX) traded flat in the postmarket session after shedding 5.57% in normal trading on Monday.