Dive Brief:
- Stitch Fix is driving better shopper experiences through a combination of greater flexibility, improved personalization and more information about stylists to help the company return to profitability by the end of fiscal 2026, executives said on a Q1 2025 earnings call.
- The styling service expanded the number of items customers can order at once from five to eight to ensure customers can explore their options, according to CEO Matt Baer. Early results show that customers who use the option request 40% more items per shipment and drive 50% greater average order value than those who choose five items.
- “We are investing and innovating in our client experience, leveraging our AI and data science leadership, as well as our team of expert stylists, to provide more reasons for clients to come back to Stitch Fix as their go-to for all apparel and accessories needs,” Baer said during the call.
Dive Insight:
Stitch Fix credited its experience improvements for helping it move along the path to profitability, but the company still has a significant journey ahead.
Net revenue was down 12.6% year over year in Q1 2025, hitting $318.8 million, according to a company earnings release. However, this was better than expected, according to Baer.
The company ended the quarter with about 2.4 million active clients, down 18.6% year over year. The number of clients in the first quarter declined 3% from the prior quarter — the smallest decline in two years, according to Stitch Fix CFO David Aufderhaar.
In addition to increasing order flexibility, Stitch Fix introduced ways for customers to learn about the company’s stylists and express their own fashion preferences.
In November, the company introduced Stylist Profiles, designed to encourage dialogue between customers and their stylists. Stylists can customize their own profiles and include details like background information, fashion tastes and preferences.
Stitch Fix customers can create their own profile, called a StyleFile, to help them better articulate their sense of style. New clients are walked through a quiz that creates the profile, which is then used to offer better personalization.
Profiles could help improve the onboarding experience, which is a goal for Stitch Fix. The company’s efforts aim to draw in new clients while reactivating lapsed customers, according to Baer.
“We feel really good today in terms of the work that we've done both within our marketing and our product experience to continue to improve and enhance the onboarding that we have for new client acquisition,” Baer said.
