Stitch Fix's latest earnings show how it's been able to simultaneously add users and earn greater spend from its existing base:
earnings for its fiscal Q3 2019 , revealing that it brought in $408.9 million in revenue, up 29% year-over-year . This result gives Stitch Fix three consecutive quarters of accelerating revenue growth and is tied for the company's highest quarterly growth since its IPO in November 2017. The personal styling service now has 3.1 million active clients, up 17% YoY.
This would lead to between $425 million and $435 million in revenue. The increase in expectations is due to factors including growth in net revenue per active client and overall client growth, CFO Paul Yee said on the company'sStitch Fix's strong performance and high hopes for the future are partially due to its current and growing ability to increase its client base and its revenue from existing users.
Stitch Fix has been able to simultaneously add users and earn greater spend from its existing base. In addition to growing its user base 17% YoY in the quarter, its net revenue per active client grew 8% YoY, marking the metric's fourth straight quarter of growth, Yee said. This means Stitch Fix is not only attracting new consumers with its offering and marketing, but also growing its appeal with consumers it's already won over, giving it greater growth potential going forward.
Style Pass has posted a renewal rate of over 70% and could help attract new consumers and additional spend from clients. Style Pass allows consumers to pay an annual $49 fee to receive an unlimited number of"fixes," rather than paying a $20 fee for each fix, and has now been around for a little over a year.
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