Stitch Fix, Inc. (NASDAQ:SFIX) Q1 2024 Earnings Call Transcript

Kunal Madhukar: Hi, thanks for taking my question. Continuing along the same lines in terms of RPAC, and given that fiscal second quarter, the AOV should be much higher, [indiscernible]. Why should we think that the guide that you have given, the top line guide, flat, QoverQ, should be the case? Why shouldn’t the revenue come in much higher? Simply because the trends are all improving, and the AOV will be much higher in the fiscal second quarter. Thank you.

Matt Baer: Yeah, Kunal, sorry, I just had a little bit difficulty hearing the question, but if I understood correctly, one of the things that we’re seeing though is new clients versus the total client base. And I think one of the things that we had highlighted earlier is, RPAC, the reason it declined from a quarter-over-quarter standpoint is because we continue to see the challenges from a fixed frequency perspective that we’ve seen the last few quarters. And that’s more of the drag on clients. And then we also have the active client loss as well and that plays into the revenue guide. And so those are probably the two factors that would be impacting that.

Kunal Madhukar: Got it, and then as far as one-time and restructuring expenses are concerned, are we done with everything or do you still anticipate some more restructuring expenses in the second quarter?

David Aufderhaar: We may have some small charges related to it just because we’re still closing out the warehouses that we had identified before, but nothing very material to call out. And also, Kunal, on the active client, just one more point on the active clients. Just to clarify, the quarter-over-quarter in Q2, we expect the decline to be similar from a percentage standpoint, slightly higher negative from a percentage standpoint than what we saw this quarter.

Kunal Madhukar: Got it. Thank you so much.

Operator: Thank you. And with that, I see no further questions in the queue. Thank you for your participation in today’s conference. This does conclude the program. You may all disconnect. Have a great day.