Q4 2025 Stitch Fix Inc Earnings Call Transcript
Key Points
- Stitch Fix Inc (SFIX) reported a 4.4% adjusted revenue growth in Q4, exceeding guidance and marking the second consecutive quarter of revenue growth.
- The company achieved an 8.7% adjusted EBITDA, or 2.8% of revenue, surpassing expectations.
- Fix average order value (AOV) grew 12% year over year, marking the eighth consecutive quarter of AOV growth.
- Stitch Fix Inc (SFIX) expanded its assortment by adding over 50 new brands, including well-known names like Birkenstock and Madewell Men.
- The company is leveraging generative AI to enhance personalization and client engagement, including the rollout of an AI Style Assistant and a style visualization feature called Vision.
- Active clients decreased by 7.9% year over year and 1.9% quarter over quarter, ending Q4 with 2.3 million active clients.
- Gross margin for Q4 was 43.6%, down 100 basis points year over year, impacted by higher transportation costs and a mix shift towards non-apparel categories.
- Net inventory increased by 20.9% year over year, which could indicate potential overstocking or slower inventory turnover.
- Despite revenue growth, the company faces a challenging macro environment, particularly as it enters the holiday season.
- Advertising costs increased to 9.5% of revenue in Q4, up 50 basis points year over year, indicating higher spending to drive client acquisition.
Thank you for standing by and welcome to the Stitch Fix fourth-quarter fiscal year 2025 earnings conference call. (Operator Instructions)
As a reminder, today's program is being recorded, and now I'd like to introduce your host for today's program, Cherryl Valenzuela, Head of Investor Relations. Please go ahead.
Good afternoon and thank you for joining us today for the Stitch Fix fourth quarter and full fiscal year 2025 earnings call. With me on the call are Matt Baer, Chief Executive Officer; and David Aufderhaar, Chief Financial Officer.
We have posted complete fourth quarter and full fiscal year 2025 financial results in a press release on the quarterly results section of our website, investors.stitchfix.com. A link to the webcast of today's conference call can also be found on our site.
We would like to remind everyone that we will be making forward-looking statements on this call, which involves risks and uncertainties. Actual results could differ materially from
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