Stitch Fix Reports Narrower Losses and Stronger Revenue Outlook for Q2 2025

The online clothing service exceeded analyst expectations with improved margins, reduced operating costs, and an optimistic forecast despite declining active clients.

• Stitch Fix's Q2 2025 revenue decreased by 5.5% year-over-year to $312.1 million but surpassed analyst estimates of $298 million.
• Net losses narrowed significantly to $6.6 million, compared to $35.0 million in the same quarter last year, reflecting reduced operating expenses.
• Active clients declined 15.5% year-over-year to 2.37 million, but revenue per active client increased by 4.3% to $537.
• The company raised its full-year revenue guidance to $1.225 billion–$1.24 billion, up from its prior forecast of $1.14 billion–$1.18 billion.
• Stitch Fix shares surged by 14% following the earnings report, with CEO Matt Baer emphasizing improvements in product offerings and client engagement driving progress.

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