Subscription styling service Stitch Fix reported a revenue increase of 0.7% YoY in its fiscal Q3, which ended May 3, marking a return to year-over-year revenue growth after several years of declines.
Net revenue for the quarter was $325 million, and while active clients did decline 10.6% YoY to 2.4 million, net revenue per active client continued its multi-quarter upward trajectory, increasing 3.2% YoY in Q3 to $542 per client.
The company’s Men’s and Freestyle (which allows customers to buy single items rather than multi-item “Fixes”) channels already had shown revenue growth in the previous quarter, but in Q3 the Women’s and overall Fix channels joined them, signaling growing strength across the business.
Based on these green shoots, Stitch Fix increased its guidance for the year and now expects to bring in $298 million to $303 million in Q4, which ends Aug. 2, 2025.
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Stitch Fix Transformation Strategy is Working
“These results reflect the strength of Stitch Fix’s value proposition and the disciplined execution of our three-phased transformation strategy,” said Stitch Fix CEO Matt Baer on a call with analysts. “Over the last two years, we have worked through the first two phases of our strategy — rationalize and build — and fundamentally reshaped how we operate. We’ve strengthened the foundation of our business, incorporating retail best practices in strategic areas such as pricing, warehouse optimization and inventory management that enable us to operate more efficiently. We’ve also brought to life a more modern and dynamic Stitch Fix through our refreshed brand identity and the progress we have made reimagining our client experience.”
In addition to the new brand identity, other recent enhancements to the Stitch Fix client experience include:
- An expansion of its larger Fix offering (up to eight items per fix instead of just five) to first-time clients, in addition to existing clients;
- The introduction of themed Fixes, allowing clients to request items for a specific occasion or new trend; and
- A new capability that will allow customers to select an item in Freestyle and request a Fix built around it.
“As we move from the build phase into the growth phase of our transformation, we’re focused on cementing ourselves as the retailer of choice for apparel and accessories by delivering the most client-centric and personalized shopping experience,” added Baer. “We pride ourselves on sending every client a Fix as unique as they are. We do this by leveraging our team of expert stylists as well as our best-in-class AI and recommendation algorithms built from the billions of insights we’ve gathered on style and fit. This differentiation is key to us gaining market share.”
