Stitch Fix is leaning into personalized styling services as it aims to revolutionize the way customers shop.
By combining advanced technology with human stylists, the online personal style platform delivers a convenient and tailored shopping experience that sets it apart from other retailers, Stitch Fix CEO Matt Baer said Monday (Sept. 18) during the company’s quarterly earnings call.
Baer, who recently joined Stitch Fix, said he has been impressed by the strong bond between the company and its customers. Baer added that he recognizes the importance of client relationships and aims to deepen and enrich those connections in the future.
These observations came as the company reported that in the fourth quarter of fiscal year 2023 a net revenue of $376 million, which was higher than its prior guidance. The company also achieved adjusted EBITDA of $10.4 million.
Looking ahead, Stitch Fix expects total U.S. revenue for fiscal year 2024 to be between $1.3 billion and $1.37 billion. Adjusted EBITDA for the same period is projected to range from $5 million to $30 million.
Stitch Fix’s success lies in its personalized approach to styling, Baer said during the call. The company uses data science, artificial intelligence (AI), machine learning (ML) and personalization algorithms to curate an assortment of clothing items tailored to each customer’s taste and preferences.
The relationships between Stitch Fix’s clients and their stylists are also highlighted as a key element of the company’s success, Baer said. The connections built on service and trust foster loyalty to the brand, addressing frustrations with traditional shopping experiences.
Stitch Fix plans to leverage its data science capabilities and human touch to further personalize the shopping experience for its clients, Baer added. By improving the personalized experience, the company aims to introduce more people to its services and drive market share gains.
Baer joined the online personal style platform in June, succeeding interim CEO Katrina Lake, the company’s founder, who continued her role as executive chair of the Stitch Fix board. Baer is a former chief customer and digital officer at Macy’s.