Stitch Fix has reported a 22 percent drop in revenue in the fourth quarter, but managed to narrow its net losses amid an ongoing turnaround strategy.
The online styling platform generated net revenue of 375.8 million dollars in the quarter ended July 29, down from 481.9 million dollars the prior year.
On a brighter note, the company narrowed its net loss to 28.7 million dollars in that same period from 96.3 million dollars the prior year.
For the full year, revenue fell 21 percent to 1.6 billion dollars, while its net loss narrowed to 172 million dollars from 207.1 million dollars.
The financial update comes as Stitch Fix continues its efforts to steer itself back to profitability through a variety of cost-cutting measures.
Last summer, the company announced a cut to its workforce, while this summer it revealed it would exit the UK market.
CEO Matt Baer, who joined the business this summer as part of its turnaround strategy, said Monday: “Since joining Stitch Fix in late June, I have spent time assessing every aspect of our business, operating model, and organization; getting to know what our clients feel we do well and where we can do better; and identifying opportunities to both optimize in the short term and reimagine for the future.
“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.”
Looking ahead, Stitch Fix now expects FY24 net revenue for its US business to come in at between 1.3 billion dollars and 1.37 billion dollars, which would represent a year-on-year drop of between 14 percent 19 percent.