Stitch Fix, the San Francisco-based online styling service, has recently reported impressive growth in net revenue for the fourth quarter, reaching $571.2 million, a 29% increase compared to the same period last year. Alongside this announcement, the company has unveiled its new shopping experience called Stitch Fix Freestyle.

This notable growth can be attributed to various factors, including an 18% increase in active clients, bringing the total to 4,165,000. Furthermore, there has been a 4% rise in net revenue per active client, reaching $505. These figures indicate a positive trend for the company’s financial performance. In fact, Stitch Fix’s quarterly net income was $21.5 million, a stark contrast to the $44.5 million loss reported during the same period last year.

Stitch Fix CEO, Elizabeth Spaulding, expressed her satisfaction with the strong performance across all of the company’s business segments, including women’s, kids, and the UK markets. She highlighted the company’s aim to expand and transform its offerings, establishing Stitch Fix as the ultimate destination for personalized shopping, styling, and inspiration. Spaulding also emphasized that what sets Stitch Fix apart in the industry is its unique combination of data science and creative human judgment.

Looking at the full fiscal year, Stitch Fix achieved net revenue of $2.1 billion, a 22.8% increase compared to the previous year. On the financial front, the annual net loss has significantly reduced to $8.9 million, compared to $67.1 million the previous year. Looking ahead to fiscal 2022, Stitch Fix expects a year-over-year revenue growth of over 15%. In the first quarter of the year, the platform expects to generate net revenue between $560 million and $575 million, representing a growth rate of 14% to 17%.

In addition to the positive financial results, Stitch Fix has announced the launch of its new service, Stitch Fix Freestyle. This offering allows customers to purchase individual pieces directly from Stitch Fix without having to order a styling package. Similar to the existing Fix offering, Stitch Fix Freestyle leverages shoppers’ Style Profile inputs, size, fit, and style preferences to curate a personalized online store where customers can instantly discover and purchase recommended items. The new service covers a wide range of categories, including casual wear, workwear, occasion wear, active wear, athleisure, loungewear, and sleepwear. Moreover, shipping, returns, and exchanges are free.

CEO Elizabeth Spaulding highlighted the company’s vision for the future of e-commerce, which is centered around personalized shopping. Stitch Fix Freestyle is seen as a way to deliver a curated and personal experience to today’s consumers, who increasingly seek highly personalized options throughout their shopping journey.

Overall, Stitch Fix’s robust financial results and the introduction of Stitch Fix Freestyle showcase the company’s commitment to growth, innovation, and meeting the evolving needs of its customers in the online styling industry.

Useful Links:
1. Stitch Fix Official Website
2. Stitch Fix Q4 Revenue Increase Article