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Stitch Fix Stock Plummets Despite Revenue Beat as Subscriber Decline Spooks Investors
Stitch Fix Stock Plummets Despite Revenue Beat as Subscriber Decline Spooks Investors
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BTCCSquare news:
Stitch Fix shares tumbled 16.6% despite reporting better-than-expected revenue of $311.2 million, marking its second consecutive quarter of growth. The decline reflects investor concerns over a 7.9% year-over-year drop in active clients to 2.31 million, overshadowing the company's financial performance.
Gross margin contracted by 100 basis points to 43.6%, while adjusted EBITDA slipped modestly to $8.7 million. CEO Matt Baer emphasized fiscal 2025 as a milestone year, citing market share gains in U.S. apparel and improvements to client experience. The market's reaction underscores the premium placed on user growth in e-commerce valuations.
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