© Reuters.
By Yasin Ebrahim
Investing.com — Stitch Fix (NASDAQ:) reported Thursday a wider loss than expected and said it plans to trim its salaried workforce as the inflation squeeze on consumer wallets and a return to bricks and mortar shopping weighed.
Stitch Fix fell more than 10% in afterhours following the report.
The company a loss of $0.72 per share, wider than Wall Street forecasts for a loss of $0.58 per share as revenue decreased 8% to $492.9 million year-on-year, just shy of estimates for $493.7 million.
Stitch Fix was previously a high-flying pandemic darling of Wall Street, but easing work from home trend and the return of outdoor shopping weighed on demand for the retailer’s personalized apparel products.
Active clients fell 5% to about 3.9 million in the quarter year on year.
The company, flagging its recent business momentum and an uncertain macroeconomic environment, said it would cull its salaried positions by 15%, representing approximately 4% of roles in total.
Looking ahead, the company forecast the job cuts would save between about $40 million to $60 million in fiscal year 2023.
Fourth-quarter revenue was guided in a range of $485 million to $495 million that was in-line with forecasts for $494.09 million.
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