"We have $247 million of cash, cash equivalents and investments with no debt."
— Matt Baer, CEO
03Detailed Report
SFIX
Company SFIX
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 20, 2026
Swipe to view all report sections
Executive Summary
Stitch Fix (SFIX) reported QQ4 FY2024 results that underscored the execution of a multi-year transformation aimed at simplifying cost structure, improving gross margins, and reimagining the client experience. FY2024 net revenue totaled $1.34 billion, down 16% year-over-year, with the company delivering adjusted EBITDA of $29.3 million (2.2% margin) and free cash flow of $14.2 million. The core drivers of improvement included a higher gross margin (44.3% for FY2024, up 190 basis points YoY) and disciplined expense management that contributed to leverage even as revenue declined. Management signaled a commitment to returning to growth by FY2026, supported by a investments in AI/data science, a broader and more flexible Fix model (up to eight items per shipment), and a substantial expansion in private-brand assortments (private brands now ~50% of product mix). Net cash remained robust at $247 million with no debt. Management highlighted over $100 million of SG&A savings realized in FY2024 and emphasized that the transformation is in the “build” phase with a clear path to sustainable profitability and growth through 2025 and beyond. The guidance for FY2025 indicates a revenue range of $1.11–$1.16 billion and adjusted EBITDA of $14–$28 million, with gross margins anchored around 44%–45% and advertising around 8%–9% of net revenue, acknowledging some quarterly working-capital variability. Management reaffirmed the long-term objective to return to revenue growth by the end of FY2026 and to deliver year-over-year improvements in active clients starting in FY2026. The QQ4 call also highlighted notable product and marketing initiatives, including the StyleFile personalized snapshot, stylist profiles with imagery, and a more flexible cadence for Fix deliveries, all aimed at boosting conversion, engagement, and long-term loyalty.
Key Performance Indicators
Revenue
Decreasing
319.55M
QoQ: -0.99% | YoY: -14.97%
Gross Profit
Decreasing
142.48M
44.59% margin
QoQ: 3.92% | YoY: -12.45%
Operating Income
Decreasing
-41.89M
QoQ: -90.25% | YoY: -34.21%
Net Income
Decreasing
-36.50M
QoQ: -71.13% | YoY: -27.35%
EPS
Decreasing
-0.30
QoQ: -66.67% | YoY: -25.00%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability trends:
- Q4 FY2024 net revenue: $319.6 million, down 12% year-over-year; down 18% on a 52-week basis and down 1% quarter-over-quarter; 14 weeks in Q4 FY2024 (53-week year for FY2024) affecting comparability.
- FY2024 net revenue: $1.34 billion, down 16% YoY.
- Gross margin: Q4 FY2024 gross margin 44.6% (up 50 bps YoY, down 90 bps QoQ); FY2024 gross margin 44.3% (up 190 bps YoY).
- EBITDA: Q4 FY2024 adjusted EBITDA $9.5 million (~3% margin); FY2024 adjusted EBITDA $29.3 million (2.2% margin, up 30 bps vs FY2023).
- Net income and margins: Q4 FY2024 net income of -$36.498 million; Q4 net income margin -11.4%; FY2024 net income and margin remained negative, reflecting ongoing transformation costs and lower revenue base.
- Active customers: End of FY2024 active clients approximately 2.508 million, down 20% YoY; management notes momentum toward improving client trajectory in FY2025 with a forecast of a continued decline but improving pace and a trajectory toward growth by FY2026.
- RPAC and AOV: Revenue per active client (RPAC) rose to $533 in Q4, up 5% YoY and 2% QoQ; fixed average order value (AOV) increased YoY in Q4, supported by keep rate improvements.
- Advertising: Q4 advertising as a % of net revenue 9.0%, up 210 bps YoY and up 10 bps QoQ.
- Cash flow and balance sheet: Ended FY2024 with $247 million in cash, cash equivalents and investments and no debt; free cash flow for FY2024 was $14.2 million.
- Inventory: Q4 net inventory $97.9 million, down 25% YoY and down 14% QoQ, reflecting disciplined inventory management aligned to demand.
- Outlook and capital structure: FY2025 revenue guidance of $1.11–$1.16 billion; adjusted EBITDA guidance of $14–$28 million; gross margin expected to remain ~44%–45%; inventory turns expected to improve after a Q1 rise in inventory levels due to seasonality, with stabilization later in the year.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
319.55M
-14.97%
-0.99%
Gross Profit
142.48M
-12.45%
3.92%
Operating Income
-41.89M
-34.21%
-90.25%
Net Income
-36.50M
-27.35%
-71.13%
EPS
-0.30
-25.00%
-66.67%
Key Financial Ratios
Gross Profit Margin
Good
44.60%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Weak
-0.13%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.11%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.08%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.20%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.80
Current ratio shows adequate liquidity to meet short-term obligations