Stitch Fix posts 29% rise in revenue, launches new Freestyle option
San Francisco-based online styling service Stitch Fix, Inc. reported net revenue of $571.2 million for the fourth quarter on Tuesday and also announced the launch of its new Stitch Fix Freestyle shopping experience.
The company’s revenue for the fourth quarter ended July 1, 2021, represented a 29% increase compared to $443.4 million in the same period in the previous year.
This growth reflected a year-over-year increase of 18% in Stitch Fix’s active clients, which totaled 4,165,000 at the end of the quarter, and a rise of 4% in net revenue per active client, which stood at $505.
Quarterly net income at the company totaled $21.5 million, or $0.19 per share, compared to a loss of $44.5 million, or $0.44 per share, in the prior-year period.
“These results reflect strong performance across our business, in women’s, kids and the UK,” commented Stitch Fix CEO Elizabeth Spaulding in a release. “As we look forward, we are focused on continuing to expand and transform our offering, and drive awareness of Stitch Fix as the destination for personalized shopping, styling and inspiration, leveraging our unique combination of data science, and creative human judgement.”
Over the course of its full fiscal year, Stitch Fix’s net revenue was $2.1 billion, an increase of 22.8% from $1.7 billion in the previous year. Annual net loss was $8.9 million, or $0.08 per diluted share, compared to a loss of $67.1 million, or $0.66 per diluted share, a year ago.
In fiscal 2022, the company said that it expects to see year-over-year revenue growth of more than 15%. In the first quarter of the year, the platform is expecting net revenue of between $560 million and $575 million, representing year-over-year growth of between 14% and 17%.
Wednesday also saw Stitch Fix launch its new Freestyle service, which will allow consumers to purchase pieces directly from Stitch Fix without having had to order a “Fix” – the site’s name for its core styling package.
Similarly to this Fix offering, Stitch Fix Freestyle uses shoppers’ Style Profile inputs, size, fit and style preferences to work out what pieces they might be interested in. However, instead of sending the pieces directly to clients as part of a Fix, the new service uses this information to curate a personal online store where each shopper can instantly discover and buy the suggested wares as they see fit.
The service, which is now available for men and women in the United States, covers categories including casual, workwear, occasion, active, athleisure, loungewear and sleepwear, with styles refreshing throughout the day. Shipping, returns and exchanges are free.
“After a decade head-start in personalization, we're reimagining the future of ecommerce, with the consumer at the center of it,” said Spaulding. “The introduction of Stitch Fix Freestyle delivers true personalized shopping, envisioned for today's consumer, who wants a highly-curated and personal experience,” she concluded.
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