Online styling service Stitch Fix has reported strong sales growth for the second fiscal quarter, attributed to improvements made to its client experience, including new AI features.
The company’s net revenue for the quarter ended January 31 soared 9.4 per cent year-on-year to $341.3 million.
Active clients fell 3.5 per cent to 2.288 million, but net revenue per active client rose 7.4 per cent to $577.
“Our client experience enhancements, improvements to the quality and breadth of our assortment, and new AI features are resonating and driving increased client engagement,” said CEO Matt Baer.
“We are gaining market share and strengthening our role as our clients’ retailer of choice for apparel, footwear and accessories as we remain focused on offering the most client-centric and personalized shopping experience in apparel retail.”
The company’s gross margin decreased 90 basis points to 43.6 per cent during the period. Net loss narrowed significantly from $6.5 million to $2.6 million, and adjusted EBITDA remained flat at $15.9 million.
For the full year, Stitch Fix expects revenue to increase 5-6.5 per cent.
