Stitch Fix, the online personal styling service headquartered in San Francisco, recently released its first-quarter financial results, exceeding analyst projections and showcasing impressive growth. The company reported a 21% increase in net revenue, reaching a total of $444.8 million for the quarter ended November 2, 2019. This spike in revenue was largely fueled by an uptick in Stitch Fix’s active client base, which grew by 17% to 3.4 million.
Despite the positive revenue numbers, Stitch Fix did note a net loss of $0.2 million, attributed to rising costs. Nonetheless, the company managed to outshine analyst expectations of a $0.60 loss per share on revenues of $441.1 million.
Founder and CEO Katrina Lake emphasized the company’s commitment to data science and personalized styling services as key drivers of their success. She highlighted that revenue per active client had increased by 10% compared to the previous year, marking the sixth consecutive quarter of growth.
In addition to the financial update, Stitch Fix revealed the appointment of Elizabeth Spaulding as its new president, effective January 27, 2020. Spaulding, currently serving as the global head and founder of Bain & Company’s digital practice, is tasked with spearheading initiatives to propel Stitch Fix’s growth, particularly in the realms of direct-buy capabilities and international expansion.
Lake commended Spaulding’s leadership acumen and vast experience, expressing confidence in Spaulding’s ability to enhance Stitch Fix’s personalization capabilities and extend its reach to a wider audience through innovative strategies.
Following these announcements, Stitch Fix experienced a 6% surge in after-hours trading on Monday, signaling a positive investor response to both the financial results and the selection of Elizabeth Spaulding as president. The company’s continued emphasis on data science and personalized services has solidified its competitive edge in the online styling service market, driving ongoing growth and success.
For more information on Stitch Fix and its latest developments, visit the official website or check out their updates on LinkedIn.
