Stitch Fix Considers Leaving UK by 2024 — Retail Bum

Online styling service Stitch Fix is exploring plans to exit the United Kingdom next year as it struggles with increased costs and a weak macroeconomic environment.

The company first launched its business in the U.K. in 2019, just as it was expanding into maternity wear, petite, and plus-size clothing. By fiscal 2023, its business in the U.K. market accounted for $50 million in annual revenue and saw a loss of $15 million before interest, taxes, depreciation, and amortization.

Along with potential plans to shutter its British operations, the company also revealed it would close down two of its five distribution centers in the U.S., with the goal of providing better inventory options to its stylists, according to Reuters.

“This consolidated network will allow us to deliver a better client experience, with access to more inventory for a given fix, while, at the same time, allowing us to operate with lower, more cash-efficient inventory levels,” said interim CEO Katrina Lake.

The company’s net revenue for the quarter that ended April 29, 2023, came out to $394.9 million, down 20% compared to the year before. Still, it was higher than analysts’ estimates of $388.9 million. The earnings report sent the company’s stock soaring by 27.99%.