In the second quarter of fiscal 2024, the company registered a gross margin of 43.4 per cent, an increase of 250 basis points year-over-year, which reflects improved inventory health and transportation leverage. Net loss from continuing operations was $35.0 million and diluted loss per share from continuing operations was $0.29, the company said in a press release.
Stitch Fix’s Q2 FY24 net revenue was $330.4 million, with RPAC at $515, down 3 per cent.
Gross margin improved to 43.4 per cent.
Net loss was $35.0 million, with diluted loss per share at $0.29.
Adjusted EBITDA was $4.4 million.
Free cash flow was -$26.1 million due to inventory timing.
Cash, equivalents, and investments were $229.8 million.
The company reported adjusted EBITDA from continuing operations at $4.4 million in the second quarter, which reflects continued cost management discipline. Free cash flow from continuing operations was negative $26.1 million in the second fiscal quarter, as expected, due to the timing of receipts related to our inventory purchases in the first fiscal quarter. The company ended the quarter with $229.8 million of cash, cash equivalents, and investments attributable to continuing operations; and no bank debt.
“The original Stitch Fix vision, to create an easier and more enjoyable way for people to shop for clothing and accessories, remained both relevant and compelling,” said Matt Baer, chief executive officer. “Our transformation efforts are grounded in fully realising that vision and include both strengthening the foundation of our company and reimagining our client experience. I am encouraged by the progress we continue to make and am confident we have the right strategic priorities in place to set us up to drive sustainable, profitable growth.”
During the first quarter of fiscal 2024, the company ceased operations of its UK business and met the accounting requirements for reporting the UK business as a discontinued operation. Accordingly, the condensed consolidated financial statements reflect the results of the UK business as a discontinued operation for all periods presented.
For the third quarter of fiscal 2024 ending April 27, 2024, the company expects net revenue from continuing operations to be around $300-310 million and adjusted EBITDA from continuing operations to be around $5-0 million.
Fibre2Fashion News Desk (RR)
