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Автор
Reuters
Опубликовано
7 июн. 2023 г.
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Stitch Fix to explore exiting UK market in 2024

Автор
Reuters
Опубликовано
7 июн. 2023 г.

Online personalized styling service firm Stitch Fix said on Tuesday it would explore exiting the UK market in its fiscal year 2024, blaming a weakening macro environment and increasing costs.


Stitch Fix


The company, which is sharpening focus on the United States, on Tuesday also reported third-quarter revenue above Wall Street estimates. Its shares jumped about 6% in extended trading.

Stitch Fix made its overseas foray into the UK in early 2019. In the same year, the company broadened its product categories to include kids, maternity wear, and petite and plus sizes.

The company, whose fiscal year 2023 ends in July, said that since its entry into the UK, "the macroeconomic environment and our business have changed".

The company said the UK would represent about $50 million in annual revenue in fiscal 2023 and the region would record a $15 million loss before interest, taxes, depreciation, and amortization.

San Francisco, California-based Stitch Fix also said it would cut down to three distribution centers from five to have better inventories available to its stylists.

The company reported net revenue of $394.9 million for the quarter ended April 29, down nearly 20% from a year earlier, but above analysts' average estimate of $388.9 million, according to Refinitiv IBES data.

Stitch Fix also said net loss narrowed to $21.8 million, or 19 cents per share, from $78 million, or 72 cents per share, a year ago.

However, the company forecast current-quarter sales below Wall Street estimates.

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