Stitch Fix Posts 9.4% Q2 Sales Gain, Lifts Profit Outlook as Turnaround Builds

Overview

• Revenue rose 9.4% to $341.3 million in the quarter ended Jan. 31, topping the roughly 6.6% increase analysts expected.
• Active clients declined 3.5% to 2.3 million, while revenue per client increased 7.4% to $577, the highest level since the IPO.
• The company reported a $2.7 million net loss and $15.9 million in adjusted EBITDA, with contribution margin above 30% for the eighth straight quarter.
• Full-year guidance calls for revenue growth of 5% to 6.5% and adjusted EBITDA of $42 million to $50 million, narrowing and raising December’s profitability range.
• Management credits AI-driven personalization, larger Fix formats and a more premium assortment for gains, and it expects positive sequential net client additions in Q3.