Stock Update: Stitch Fix shares Plunge 33% following wider-than-expected Q4 loss and disappointing outlook

Stitch Fix (NASDAQ: SFIX) shares dropped 33% after the online personal styling service reported a larger-than-expected loss for its fiscal fourth quarter and issued a downbeat forecast for the upcoming year. The company posted a 16% decline in net revenue for fiscal year 2024, falling to $1.34 billion, with active clients decreasing by 20% to 2.51 million.

Despite the drop in revenue and clients, Stitch Fix saw improvements in its gross margin, which rose to 44.3%, the highest since 2021, and an adjusted EBITDA of $29.3 million. CEO Matt Baer emphasized the company’s ongoing transformation efforts, which are expected to return the business to revenue growth by FY 2026.

For FY 2025, Stitch Fix expects revenue to be between $1.11 billion and $1.16 billion, with adjusted EBITDA projected between $14 million and $28 million. The company ended the fiscal year with $247 million in cash and no debt.

As of 10:43 am the shares were trading 33% lower at $2.4901

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