Stitch Fix reported QQ4 2024 revenue of $319.6 million with a gross margin around 42% but continued to incur operating losses, producing a net loss of $36.5 million and an EPS of -$0.30. The quarter demonstrates a stable revenue base versus prior year (YoY revenue decline ~3.3%), yet profitability remains constrained by elevated operating expenses and ongoing investments in technology, marketing, and inventory management. On the balance sheet, Stitch Fix shows a robust liquidity position with cash and equivalents of $162.9 million and total cash and short-term investments of $246.97 million, yielding a net cash position of roughly $-141.0 million and a healthy current ratio of 1.80. Operating cash flow was positive at $8.97 million, capex was modest at $3.71 million, resulting in free cash flow of about $5.26 million for the period.
From a qualitative perspective, the company continues to operate in a highly competitive, discretionary consumer environment. While the gross margin remains solid for an DTC apparel retailer, the margin is not yet sufficient to offset high SG&A and product-acquisition costs that drive the current losses. The liquidity cushion provides optionality to fund strategic initiatives such as merchandising optimization, personalization capabilities, and customer retention programs while pursuing a path toward sustainable profitability. Management commentary (where available) will be key to confirming step-change in unit economics, marketing efficiency, and inventory discipline, which are the main levers for freeing up cash flow and advancing toward breakeven profitability.