SFIX Q1 Loss Narrower Than Expected, Active Clients Decline Y/Y

Core Viewpoint - Stitch Fix, Inc. reported first-quarter fiscal 2025 results with both revenue and earnings exceeding Zacks Consensus Estimates, although revenue declined year-over-year while earnings improved [1][4]. Financial Performance - The company recorded an adjusted loss of $0.05 per share, better than the expected loss of$0.14 and the loss of $0.22 from the previous year [4]. - Net revenues were$318.8 million, surpassing the estimate of $306 million but down 12.6$531 [5]. Margins and Expenses - Gross profit decreased by 9% to $144.8 million, but gross margin improved by 180 basis points to 45.4$153.8 million, with SG&A as a percentage of net revenues decreasing to 48.2% [7]. - Adjusted EBITDA was $13.5 million, up from$8.6 million in the prior year, with an adjusted EBITDA margin improvement of 180 basis points to 4.2% [8]. Cash and Equity Overview - At the end of the fiscal first quarter, the company had cash and cash equivalents of $137.2 million, short-term investments of$116.1 million, and no debt, with net inventory at $119.1 million and shareholders' equity of$190.5 million [10]. Fiscal 2025 Guidance - For Q2 fiscal 2025, revenues are expected to be between $290 million and$300 million, indicating a 9-12% year-over-year decline, with adjusted EBITDA projected between $8 million and$13 million [11]. - The full fiscal 2025 revenue outlook has been raised to between $1.14 billion and$1.18 billion, compared to the previous guidance of $1.11 billion to$1.16 billion, reflecting a 10-13% year-over-year decline [12].