The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Online personalised 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.
The company, which is sharpening its focus on the United States, on Tuesday also reported third-quarter revenue above Wall Street estimates. Its shares jumped about 6 percent 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”.
ADVERTISEMENT
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 amortisation.
San Francisco, California-based Stitch Fix also said it would cut down to three distribution centres 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 percent 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.
By Anne Florentyna Gnanaraja Sekar and Deborah Sophia; Edited by Maju Samuel
Learn more:
Will Brands Ever Get Product Recommendations Right?
The technology that exists for brands to offer customers individualised online shopping experiences is expensive and complex. But some start-ups are finding ways to personalise product recommendations and more.
Designer brands including Gucci and Anya Hindmarch have been left millions of pounds out of pocket and some customers will not get refunds after the online fashion site collapsed owing more than £210m last month.
Antitrust enforcers said Tapestry’s acquisition of Capri would raise prices on handbags and accessories in the affordable luxury sector, harming consumers.
As a push to maximise sales of its popular Samba model starts to weigh on its desirability, the German sportswear giant is betting on other retro sneaker styles to tap surging demand for the 1980s ‘Terrace’ look. But fashion cycles come and go, cautions Andrea Felsted.
The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.