Christmas came a little early for Stitch Fix Inc. investors.
Shares of the online styling service shot up 20.9 percent to $5.56 in after-hours trading Tuesday as the company turned in first-quarter results for fiscal 2025.
The company still has a way to go in its turnaround, but is showing signs of traction under Matt Baer, chief executive officer.
Losses narrowed in the fiscal first quarter to $6.2 million, or 5 cents a share, down from $36.5 million, or 22 cents, a year earlier.
Adjusted earnings before interest, taxes, depreciation and amortization tallied $13.5 million, a good jump from the $8.6 million seen a year earlier.
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Revenues for the three months ended Nov. 2 fell 12.6 percent to $318.8 million from $364.8 million. Revenues came in nearly $12 million ahead of the $306.9 million analysts had forecast, according to Yahoo Finance.
“Our fiscal year is off to a strong start,” Baer said in a statement. “We exceeded our expectations in the first quarter on the top and bottom lines. Our clients are responding to the newness we have brought to our assortment as well as the improvements we’ve made to our client experience.”
The company expects to return to revenue growth by the end of fiscal 2026.
Stitch Fix users take a style quiz and connect with a human stylist, who then sends off a box with up to eight items to try on at home. There’s a $20 styling fee that is credited to any looks that are actually bought and return shipping is free.
That personalized approach helped Stitch Fix scale quickly, but lately the business has been resetting. The company saw its active client base fall to 2.4 million, a decline of 555,000, or 18.6 percent, from a year ago.
But users are spending more with the service as revenues per active client rose to $531 in the quarter, an increase of 4.9 percent from a year earlier.
For the full fiscal year, Stitch Fix expects its revenues will come in at $1.14 billion to $1.18 billion, a decline ranging from 13 percent to 10 percent. Adjusted EBITDA is projected to range from $25 million to $36 million.
Stitch Fix ended the quarter with $253.3 million in cash and investments and no debt.
