Market cheers Stitch Fix outlook, despite Q2 revenue decline

For the second quarter of 2025, online styling service Stitch Fix recorded a 5.5 percent decrease in net revenue to 312.1 million dollars. However, net revenue per active client of 537 dollars, increased by 4.3 percent year-over-year.

Despite the revenue drop, the market reacted favourably to the company’s outlook. For fiscal 2025, sales are projected at 1.225 billion to 1.240 billion dollars, a year-over-year decline, but an increase from the prior December forecast of 1.14 to 1.18 billion dollars.

“Our clients are responding to the improvements we’ve made to our experience, including the increased newness in our assortment, expanded fix flexibility, and investments in stronger client-stylist relationships,” said Matt Baer, CEO, Stitch Fix.

Gross margin of 44.5 percent saw an improvement of 110 basis points, net loss reached 6.6 million dollars with diluted loss per share of 5 cents and adjusted EBITDA was 15.9 million dollars.