Stitch Fix to Exit U.K. Operations
Stitch Fix has decided to exit its U.K. operations by October, with an expected revenue of $8 million for fiscal 2024.
Stitch Fix, the online personal styling services company, has announced its decision to wind down its U.K. operations and leave the market by the end of October. This move comes after a three-month review of the business, with the consultation period concluding on Aug. 24. As a result, Stitch Fix anticipates that its U.K. business will be reported as a discontinued operation in the first quarter of fiscal 2024.
In terms of financial impact, Stitch Fix expects to recognize revenue of approximately $7 million from its U.K. business in the fiscal first quarter, with a total of $8 million for fiscal 2024. This figure encompasses both sales to clients and the liquidation of inventory. However, the company has not provided specific details regarding the impact on its overall operations or guidance, nor has it mentioned any potential effects on employees.
Coinciding with this announcement, Stitch Fix has also reported a narrower loss in the fiscal fourth quarter. Nevertheless, there has been a decrease in revenue due to lower active clients.