Stitch Fix Shares Plummet 13% Due to Earnings Miss and Weak Guidance

SAN FRANCISCO – Shares of Stitch Fix Inc. fell 13% in after-hours trading on Tuesday after the online personal styling service reported a larger-than-expected loss for its fiscal fourth quarter and provided disappointing guidance.

The company recorded a loss of $0.29 per share for the quarter ending August 3, which was worse than the analysts’ estimate of a $0.20 per share loss. Revenue decreased by 12.4% year-over-year to $319.6 million, though it slightly surpassed the consensus estimate of $318.48 million.

Stitch Fix’s outlook also failed to meet expectations. For the first quarter of fiscal 2025, the company projected revenue between $303 million and $310 million, significantly lower than analysts’ forecasts of $331.3 million.

"We are executing our transformation strategy with discipline, and during the fourth quarter, we delivered results at the high end of our guidance on both the top and bottom line," stated CEO Matt Baer.

Nonetheless, Baer noted that "there is a lot of work still to do" as the company aims to achieve revenue growth by the end of fiscal 2026. Additionally, the number of active clients decreased by 19.6% year-over-year to 2.51 million in Q4.