Stitch Fix Delivers Wider Q3 Loss; Plans to Cut Salaried Workforce

This post was originally published on this site — Stitch Fix (NASDAQ:SFIX) reported Thursday a wider loss than expected and said it plans to trim its salaried workforce as the inflation squeeze on consumer wallets and a return to bricks and mortar shopping weighed. 

Stitch Fix fell more than 10% in afterhours following the report.  

The company reported a loss of $0.72 per share, wider than Wall Street forecasts for a loss of $0.58 per share as revenue decreased 8% to $492.9 million year-on-year, just shy of estimates for $493.7 million.

Stitch Fix was previously a high-flying pandemic darling of Wall Street, but easing work from home trend and the return of outdoor shopping weighed on demand for the retailer’s personalized apparel products. 

Active clients fell 5% to about 3.9 million in the quarter year on year.   

The company, flagging its recent business momentum and an uncertain macroeconomic environment, said it would cull its salaried positions by 15%, representing approximately 4% of roles in total.   

Looking ahead, the company forecast the job cuts would save between about $40 million to $60 million in fiscal year 2023.

Fourth-quarter revenue was guided in a range of $485 million to $495 million that was in-line with forecasts for $494.09 million. 

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