Stitch Fix is Losing Customers as It Competes Against Itself

With tough macroeconomics complicating its effort to add traditional e-commerce to its box business, Stitch Fix lost 370,000 customers in its fourth quarter, or 9% of its active client base. An active client is anyone who received a box or an item via its Freestyle apparel site in the preceding 52 weeks, and each women’s, men’s or kids account is counted, even if they’re in the same household.

The decline helped push net revenue down 16% year over year to $481.9 million. The e-retailer swung to a $96.3 million net loss in the period, from last year’s $21.5 million net income, according to a company press release.

For the year, net revenue fell 1.4% to $2.1 billion, as net loss widened to $207.1 million from $8.9 million last year.