Stitch Fix Reverses Client Decline by Revamping Personal Shopping Features

Stitch Fix’s efforts to improve its client experience and assortment resulted in year-over-year revenue growth and quarter-over-quarter active client growth during the quarter ended May 2, CEO Matt Baer said in a Wednesday (June 10) earnings release.

The online personal styling service saw its net revenue increase 4.7% year over year to reach $340.3 million and its active clients increase 0.9% quarter over quarter to reach 2.309 million. The company’s active clients decreased 1.9% year over year, according to the release.

After Baer joined Stitch Fix as CEO in 2023, the company began making changes to reimagine the client experience in 2024 and began adding new innovations to offer a more personalized and client-centric shopping experience, according to an investor presentation released Wednesday.

Stitch Fix now offers customers a choice of personalized styling services or shopping on demand, the ability to shop for all ages, and access to thousands of styles from the company’s brand partners and its own private brand assortment. Over 92% of clients say the company gets their fit right, the presentation said.

Some of the newest ways for clients to shop and engage with Stitch Fix include Stitch Fix Vision, which is an artificial intelligence-powered style visualization tool; Stylist Connect, which enables clients to communicate with stylists outside of the Fix; Family Accounts, which make it easier for clients to style other people in their household from the same account; and AI Style Assistant, which is a conversational AI tool that helps clients clearly articulate their needs, per the presentation.

Stitch Fix said in the presentation that the service provided by its AI technology, human stylists and assortment of leading brands is helping it meet more of its clients’ needs.

Baer said in the earnings release, speaking of the company’s latest quarter: “These results reflect our team’s consistent execution of our strategy and underscore that the improvements we’ve made to our client experience and assortment are resonating. We remain confident that our disciplined approach will enable us to continue to strengthen our position as our clients’ retailer of choice for apparel, footwear and accessories, as well as navigate today’s dynamic consumer environment.”