Stitch Fix, Inc. (NASDAQ: SFIX) has reported a wider loss for the first quarter of 2023. Revenues declined sharply as inflationary pressures continued to squeeze people’s spending power. The results also missed estimates.
The personal styling services company reported a comprehensive loss of $57.7 million or $0.50 per share for the first quarter, compared to a loss of $2.75 million or $0.02 per share in the same period of 2022.
The bottom line was negatively impacted by a 22% fall in revenues to $455.6 million. The company had around 3,709,000 active users at the end of the quarter, which is down 11% from the year-ago period.
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“By enhancing our client experience, rightsizing our cost structure, evolving our marketing and deepening our differentiators of fit, discovery, and human relationships, we are positioning ourselves well to achieve profitability in the near term and a return to growth in the future,” said Stitch Fix’s CEO Elizabeth Spaulding.