Stitch Fix returns to revenue growth in Q3, ‘exceeded expectations’

Personal styling platform Stitch Fix returned to year-over-year revenue growth in the third quarter of fiscal year 2025, ended May 3. The company reported a net revenue increase of 0.7 percent to 325 million dollars, despite a 10.6 percent decrease in active clients.

In a release, Stitch Fix’s chief executive officer, Matt Baer, said: “Our performance, which exceeded expectations, is the direct result of the strength of the Stitch Fix value proposition and the team's disciplined execution of our strategy.

“Now in the growth phase of our transformation, we are focused on cementing our role as the retailer of choice for apparel and accessories by consistently delivering the most client-centric and personalized shopping experience.”

Stitch Fix’s gross margin came to 44.2 percent during the period, reflecting a decrease of 130 basis points that was said to have been driven by lower product margins. Its net loss came to 7.4 million dollars, while its adjusted EBITDA amounted to 11 million dollars.

Looking ahead for the fiscal year 2025, Stitch Fix is anticipated to see net revenue between 1.254 billion and 1.259 billion dollars, reflecting a decrease of between 6.2 and 5.9 percent. Its adjusted EBIDTA, meanwhile, is forecast to sit between 43 and 47 million dollars, while its gross margin is expected to be at the lower end of a 44 to 45 percent range.