Stitch Fix (SFIX) 10 Dec 242025 Q1 Earnings call transcript

Good afternoon, and thank you for standing by. Welcome to the First Quarter Fiscal Year 2025 Stitch Fix Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. And now I'd like to introduce your host for today's program, Lilly Bindley, Investor Relations.

Thank you for joining us today for the Stitch Fix first quarter fiscal 2025 earnings call. call Chief Baer, Financial the and Executive on Aufderhaar, David Officer. me are Chief Matt Officer; With

filed by We the and in cause have results section posted of our materially Form on in investors.stitchfix.com. will as section review our filings a note our We except disclaim information on complete by to annual our link for Reported as with particular well today's not first this involve required future quarter contemplated risks date. available release A like statements also the from today's XXXX conference with Factors on on on the and of site. We call fiscal be any forward-looking that of update to quarterly the differ call, to performance. be based the could forward-looking as uncertainties. would forward-looking the results making we results to of results law. that can website, press forward-looking our XXXX factors be SEC webcast filed differ, of everyone financial release found results that statements any report this discussion are for SEC. Also as issued previously press Risk an today Actual remind us statements. call considered Please our on statements, those the indication could XX-K which a the should as of obligation to

Accordingly, quarter XXXX, GAAP continuing metrics report be release website. all operations. our intended measures results. In are began provided most not certain on During our operation. press this measures comparable discussed measures. as directly business we the GAAP non-GAAP for Reconciliations to financial the Relations to are financial These a today's on represent of discontinued Investor substitute our the call discuss fiscal first our will U.K. non-GAAP call, in to we a

the is being me Relations the webcast replay now call entirety and a in this call this shortly. of call website, Matt. on Investor let on its Finally, website our And available to be over turn will

us. Good afternoon, for thanks and joining

off of delivering This are XXX in to million. our strong is to revenue XXrd basis QX, QX net expectations the exceeded year-over-year the fiscal in $XXX.X point when We a year. from a week. comps adjusted for start improvement We

million, ongoing We of $XX.X the and improve to work the reimagine the our our foundation we is our approximately includes experience. of strengthen to of contribution in also margin, our delivered EBITDA client the execution quarter. This transformation which adjusted continue business XX% delivering and progress of result strategy, our

to transform by We 'XX. are and to continue the on track growth to to we end expect of return business, successfully FY our revenue

also shortly. raising our more will are annual and We on that David guidance, share

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early the place our this to strategy with year demonstrates we return by encouraged engagement start to further have the we seeing. I'm pleased the to progress growth. in our strong are We and are fiscal right believe quarter

our provide We leveraging data are in AI their science as back expert leadership reasons to more Fix to stylists clients come our team apparel client well needs. accessories investing for and and Stitch to go-to for innovating as our of all and as experience,

call results future of the David to our over details turn more to I'll share financial and outlook. Now

Matt. Thanks,

we to a this to As FY end Matt to start year, the growth to expect return revenue and of 'XX. continue strong QX by said, fiscal was

on to worked foundation engagement, the this As client including and driving top confidence approach targeted we leverage us across and that seeing, is are we making performance continue towards long-term working, all solid healthier our improving growth hard results line we've transformation, we're investments positive continued focused profitable indicators the continue sustainable give are so strengthen. The while maintaining growth. P&L to

the in range X quarter up client XX% million, delivering highlighted XX to year-over-year QX our clients, work product, our for quarter-over-quarter. dive came down XX.X%, came capture at and down quarter-over-quarter X% Both consists contribution as factors: XXX focused favorable the product and in into to XX% our range up cost leverage. With from transportation at XX%, X.X% guidance that basis slightly Fix the approximately QX in inventory year-over-year, Therapy active margins make net year-over-year year-over-year. gross organizations. Cost up ops saw the styling XX% margins improvements we our XXX consecutive and opportunities our with main XX% to warehouse fixed campaign pricing up efforts above and of QX years, quarter-over-quarter. XX% mentioned. in cash, flat quarter-over-quarter. Revenue Advertising million in X and $XXX, equivalents AOV, the and margin, basis in clients down debt. third We investments XX flexibility, ended points well came optimization above and on up order historical continue basis points expansion Fix and this $XXX XX%. our X% due cash efforts and quarter-over-quarter. generated Net Revenue healthy year-over-year year-over-year our driven XXX basis we the points flow rebrand quarter client timing a newness with and a to and quarter, representing shift driven fall/winter in XX% of was quarter our year-over-year flat XX% up sequential warehouse align fall estimated to adjusted margin of as net the to leaned Retail $XXX.X ongoing returns and as up and points XX% styling margin was at and our This to spend. We $XX.X our the down active or ahead upside in year-over-year needs of million continued down investment our efforts and was leverage our million, more seasons clients. QX at quarter driving down ad ended as the earlier-than-expected revenue quarter-over-quarter. by Gross quarter-over-quarter quarter X% AOV of receipts improved an X.X well let's for range $XXX.X year-over-year sustainable offering drive count due basis XXX active was in above Now by was our and quarter-over-quarter into with of contribution of were above million as million cash margin and $X.X in per of per no QX, quarter-over-quarter. This of in was results. closely our decline X.X% QX up year-over-year up of points free basis revenue relatively strength architecture. and year-over-year of in into per approximately EBITDA was ended in points We the lowest investments reactivations Matt the in methodical

outlook. our to Turning

the of EBITDA guidance. are quarter, updating a this saw revenue our and result As annual we strength we

$X.XX year For billion. FY 'XX, billion revenue the be between expect and $X.XX full total to we

the for EBITDA working million. to QX between will capital year million we do adjusted expect for we inventory flow but to This year, related and total purchases. the expect to free positive We timing still negative $XX cash be assumes be guidance full the to of $XX due requirements be

For $XXX QX, to we million expect $XXX be between total million. revenue and

adjusted $X be million $XX We and to million. expect QX EBITDA between

be provided we full ongoing XX%, of our year to outlook reflects approximately now return focus XX% last EBITDA upside on we advertising to the business the in We methodical expect when and approach reflecting right X% to see we at areas high X% have in year QX while the leverage the and the range quarter, expect both margin full our to we our end be growth. taken ROIs. This into to drive opportunistically to targeted back business gross investing reinvesting to

close we've are and to delivering the and been efficiency As we in approach to it we us transformation, taking I'll our turn back that, to reinvesting. With ability through progress continue out. our Matt over confident

both To show results metrics. David. both range strategy reiterate, our for Thanks, revenue EBITDA, increased our full We is and working. our our for for outlook and exceeded we've QX year guidance

client-centric most and to delivering our shopping are be personalized We experience. vision on the

address We work with and Stitch quarter. I to I of continue you and you want day. moment to our Fix to make great take do return all to all more a progress Thank you also to forward next growth, for great towards sharing employees. look every the each our

Our all aspects to to commitment continued turn testament are and of into business. I'll have a the our over infused questions. now centricity the operator call which to your the client improvements mission you for our

[Operator from Ripps the today Instructions] comes And from first for of Canaccord. our question Maria line

of are year strong broadly, quarter. flexibility is of key forward? the you to else your that's mentioned how raised sort highlighting But this of stronger-than-expected do you talk here? And think anything dynamics of guidance, this was spend which but and full Can on sustainable you then maybe architecture, worth so more maybe you there per going quarter? great see. about sort sort price think contributors client Congrats sort to Fix I

Maria, kind Matt. appreciate and I question the words. it's the

the in in question happy spend what a well. prepared of client, would of little contributors first more and back per reference remarks, for a the information the we terms as The to bit lot I shared share

things making goods. We've in the middle drive we're to penetration style really our really of terms One per the fall newness the seasonally improvements saw We per jackets appropriate right inventory and lot in available having increase assortment. of winter for inventory strong times. We from we're right other of on us share of as that September saw in inventory the trend was our helped was strong well as continued in in sales that clients of and that the sweaters, our ensure seasonal starting driver client for client. at in that our our and terms performance continued really to strength the and of a spend a

value considerably noted, we've created those average more identified We is that our addition, for clients order in few them. And for work taken you that as of in this our our take us a and increase had both really back that the as we we're spoke an too, we flexibility this go pretty of had terms opportunity across ultimately, to opportunity great the elasticity our and helped us holistic board, capture advantage Fix, of understand for architecture. terms you and pricing. in price where net-net, look And this a have ago, recognizing In inventory AUR the that opening of work initial AOV. and creating up the points more noted to helping value that's optionality doing pricing calls to drive

of else is something clients, as per all we'll how our in increasing think some little also and to at And in increase good clients. to capturing between those, we've them make been using channel that engage really we to where How can color, spend with much focused our we their the have to moments which client. And fixes? and addition sure really complement we're our clients. really Freestyle we're let of business terms at as I David so with our we How clothing that are, can In providing the those Fix sustainable possible, more that additional creating about wallet a helped these but on to contribute engagement in feel we're that doing apparel bit share frequency we're we're share provide I'll today. the really for

while happy do. we on penetration increasing concentration we're our still work as the noted in results of remarks, in have prepared in newness assortment, our also, QX, the Our with to

penetration to we from looking penetration as we're for the year, for the that it. be continue on get have demand we're right flex where over inventory time ensuring in shared fiscal good to optionality product and within last there pricing at with good -- assortment approved just the going about but triple we that through us a them. And our fiscal of Fix newness of lean see to that feel to going to today, continue then the a our is the capture amount up right to client-right balance standpoint, perspective, we we'll course as the for to we're and from As see work we the the we XX% of the client our the have to really right we year focus call, the ensure forward. We make

that the We we'll also of our recognize over course current of quarter, that be initiation work. the anniversarying

we've feel us. So pull and while we about bit, there still that be a the that really little will capability have -- might for might while long-term it the impact that, back built good

to just you expectations. And think numbers of things was Specific I primary that's just think the we And X% I one year-over-year, that. couple Fix add and Maria, beat Matt out. remarks within really a we I'll it's up saw our a of high our QX, saw were AOV the that reasons couple David. end around of in called that of that that

saw capture we were being did expected our quarter. fall/winter be that saw upside really upside, in and of first, great was called than offering a the into really the goods, transition new earlier-than-normal prepared to AUR and seasonal to teams earlier able ramp flex we out the fresh, new inventory launch with by really flex Fix that driven merch and second that to that that The for what around there. And is we able is Fix Matt job

to a that and so around of couple point And drivers guide the full that year did. were forward, play X way things the guide, of we we do your full the that were year main occurred updated the quarter. And those why of then there the that's

upside in point, we well. the clients, to into expect play a new active forward. And little where X%, to in our full thing of we're first said at sort I other there did X%, and than we think to have around guide. saw forward playing AOV came that as then that we then QX the more beat some that drivers right is that addition The we incorporated down to of expected of And is and quarter last year were we we small that Matt's year had a of sort to the drivers for be all expectations

comes our from Jay Sole of next from question And line UBS. the

us can of you remarks, driven if little have right the the in bit touched are AOV? how the what be little helpful. sales Matt, private just you a on would tell brands elaborate had brands bit that in just elaborate, about but percentage can those impact business? now, You a on that And greater prepared maybe you can that's

client Jay, day, yes, and portfolio using those employ to guide we what and clients' to data-driven are that to a just our and we to month. And ways And to that is. where our happy and continue our learning month clients remarks, to private and client in national of we're we're to And we'll do that through where the to what flow. week I clients needs, of of offering robust that we profitably needs, insights into what strength from decision-making our to Stitch is that of the what and I'll are ebb It's national is penetration have the operating percentage in spoke from week, mentioned will given them have. I of margin that to strength on best allows ebb continue a depending prior on our flow healthy the contribution brands. that a target that's portfolio terms elaborate. of meet for going we the can best and And buying us the to day start private position to as I one call, a serve Fix the adjust overall believe want brands, think prepared and we that that approach

the the the on of those -- of brands historically rate our our market total brands, private market to resonate As seeing really prepared we and keep we've continue have as strength is and prior there shared in in shared portfolio. lot clients, brand margins outperformance over an remarks. but total XX% continue our a to XX% our of composition calls, and And our around with market our also we're to

product to So the they're well make at that we're get and just have end of our serve assortment confident we client-right going day, to that the the looking ability in really and sure them feel for. extremely our continue clients to the

things sneak Got with can before in queue, can one back active bit I continue been things it. talk to I just more file? making a client to you going you move little incrementally to go do the about in just maybe more you're If looking the talk have about that forward that progress the right you're in that successful -- Can and maybe direction?

Yes.

we're please progress see as forward. happy well this at speak context. additional both active moving where with where to to of jump So we from And in a as clients any David,

acquired a upfront, that we're to For order our acquiring over it our and us, primary of then ensuring focus in spoken as drive revenue needs once active client active client up we've clients. That's which we've previously, is we're client, per increase clients ensuring important in terms their are increase really to and meeting are is healthy about LTV our we work time. and the our driving but engagement, how to clients that base, both

frequent done feel and been our clients with that in I order them. our And client frequent doing we've in the visits good too, I to work transactions prior feel good onboarding terms response noted marketing product today to really So how we're our acquisition. I more reengagement. current strength within about been clients that and enhance in as drive to Maria's really improve and I to that of to the terms the we've in new more we've seeing engaging also question, for we good of have and experience continue work about the reengage that both feel our really

working increase So to and RPAC to be on, active this well continue overall, count drive LTV to pretty metrics. as up increase I that will about our our and good number that both feel as focused something that engagement client perpetually we're

Jay, definitely we would Matt's And think, expectations. this that sequential to I with growth. pleased improvement just we're slightly terms add see our I I quarter, very to continued point, of where we expect in think are beating And for QX,

I had out bit called X% than last quarter. think more we down little a

that I back point, numbers to 'XX. standpoint. And I expect sort is LTV quarter-over-quarter somewhere Matt's the quarter of being This think highest in X% about the during some bringing last we've FY of we that down that are certainly to of to making we're quarter, all that in see roughly, seen reiterate the what sure XX-day think expect we're seeing this active increase seeing gives we almost X% a between to quarter-over-quarter where X about clients be and methodical And right and a sort in years. confidence us of from clients that in we said

next the from from our comes Blair. of Carden And question Dylan William line

Nice here. progress

that inventory So to ROAS, more you engagement as if data you on have used doing sounds on as is have sets a this sort there leveraging view It of far now, sort or seeing retention that engagement. side, if like the improve customer being of but is you're from AI the I'm standpoint? doing of the leverage there's that as curious you're deep anything right you're anything

Can just repeat answer happy it Dylan, to the you question. quickly?

or AI in is, curious, retaining? a do engaging are of just capacity short it you your I to data customer or I'm Sure. sets using retention any better for through the mean job

strong the been making. appreciate regarding we've and that I progress Happy the to answer comment Yes. Yes. question, the

absolutely has of Stitch in a value the aspect that is to bases with our think to core key and different continued client data into what's lot unlock is cost AI reference It's methodically able that in strength AOV capabilities, of both to So just increase engagement reengagement promotional integrated margins X. It's a drive able what's our our It us, every capabilities -- use be our point capabilities while a and we've all us. these up And variety new segmentations. It's and company. AI investment of science area us seen is it's client just contribution been we've in we're for the delivering as we're Fix, drive business. to of been DNA, other important for from of such our I and able to and part our Day at had a proposition. that and order order a component promotional effectively cases, using to different not a our use in for highest a public engagement

So it's going lean to that area an we'll something strength continue to to competitive it's on, of be us. and for continue

brands those sounds those sounds like Excellent. the incremental of to or you're you, in like better finding rattled It get of some remarks. brands a sort off pitch in. And better handful then there it prepared there if true I'm are of that's you if and what access to and of and your relevance curious is to kind

question. the appreciate I Yes.

brands we're portfolio. or there do are as also integrate clients a are brand the and spaces as being within terms mentioned the what strong sets which brands market, very best certain going lot with fill the our that think our market going lot that instances, of meet have into client-led the current after our in what's have, do data that we're either to just we and wants So experience, understanding looking and to with need in have determining go needs I market brands how portfolio, brand-specific in or that, we a that private are clients our of are private also our to we white clients? We of needs of a we and of brands the to trending for, acknowledge before, coverage in brand that don't what with are we has

value I think we for market have compelling a proposition brands. really

very their front current client get satisfaction client creates clients' very a to that opportunity that otherwise base. the service base physical potentially, this and client engaged really highly meeting becomes to job our network and unparalleled of that's access a a market brands the needs outside to. base, and a We to and have good direct-to-consumer do in great convenience of reach in We to introduce order clients a either service. It's have new unique differentiated the a their in that they of client for or of reach reach brands

we attract with our reception we bring So our brands as new with out deepen relationships market good really the as today found into well to to assortment we tomorrow. market brands to go to work market as both

question Markets. comes [Operator line Instructions] Capital next Our the of Siegel from Simeon from BMO

Dan for on the is This Congrats on nice improvement. Simeon.

we to before wanted you in going talked this reactivation opportunity how opportunity you trending touched So around and see the expectations And then past. on view how you your forward? reactivations Jay's just versus about with question, are the it

hear from you appreciate I to nice the again. remarks. Dan,

So we order works additional But that add see that's big in a color, focus if doing free to strength reengagement. some ours. like. in of David, been continue to we're drive feel the you'd to

clients the and experiencing enhancements targeting it of well we continue really made engagement base aware come when AI-driven continue that service offer and and we have convenience we've results large a great style fit, assortment, both our when of the active that base have that former previously well seen them they're and great improve client as great segment strong giving to to capabilities, really value client to experience, to the improve clients experience back opportunity offer We reimagine large to a that results some overall. and our we've really assortment to a a proposition and to of consumers, and been that us. They're seen and we back the to comes our and our improve Stitch as Fix we've as continue great improve going

And around this provide to expectations we Matt's of a encouraged active We're that's growth our from of main to because year-over-year a one really second And in client a Dan, XX% an reengagements were and point, the couple numbers beat around slightly up that. was of reasons it did quarter reengagements. just definitely, quarter, row. standpoint year-over-year,

point, in some to by lean the to so here, really and encouraged the And work teams Matt's really good results. seeing are doing we're just

you, Thank you. and Thank program. question-and-answer as the gentlemen, And today's for this does well your session as ladies participation. conclude

You may disconnect. Good now day.