sfix-20221029

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 29, 2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-38291

STITCH FIX, INC.

(Exact name of registrant as specified in its charter)


Delaware									27-5026540
(State or other jurisdiction of incorporation or organization)									(I.R.S. Employer Identification No.)

1 Montgomery Street, Suite 1100

San Francisco, California 94104

(Address of principal executive offices and zip code)

(415) 882-7765

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of Each Exchange on Which Registered

Class A common stock, par value $0.00002 per share

SFIX

Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of December 2, 2022, the number of outstanding shares of the registrant’s Class A common stock, par value $0.00002 per share, was 85,403,036, and the number of outstanding shares of the registrant’s Class B common stock, par value $0.00002 per share, was 25,405,020.

STITCH FIX, INC.

TABLE OF CONTENTS


						Page No.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements:						3
Condensed Consolidated Balance Sheets						3
Condensed Consolidated Statements of Operations and Comprehensive Loss						4
Condensed Consolidated Statements of Stockholders’ Equity						5
Condensed Consolidated Statements of Cash Flow						6
Notes to the Condensed Consolidated Financial Statements						7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations						18
Item 3. Quantitative and Qualitative Disclosures About Market Risk						26
Item 4. Controls and Procedures						26

PART II. OTHER INFORMATION						27
Item 1. Legal Proceedings						27
Item 1A. Risk Factors						27
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds						49
Item 3. Defaults Upon Senior Securities						49
Item 4. Mine Safety Disclosures						49
Item 5. Other Information						49
Item 6. Exhibits						50
Signatures						51

PART I. FINANCIAL INFORMATION


ITEM 1.			FINANCIAL STATEMENTS

Stitch Fix, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except share and per share amounts)


	October 29, 2022		July 30, 2022
Assets
Current assets:
Cash and cash equivalents	$	113,346	$	130,935
Short-term investments	90,041		82,049
Inventory, net	220,163		197,251
Prepaid expenses and other current assets	42,095		39,456
Income tax receivable	921		27,561
Total current assets	466,566		477,252
Long-term investments	5,379		17,713
Income tax receivable, net of current portion	26,091		26,091
Property and equipment, net	99,847		103,375
Operating lease right-of-use assets	140,241		132,179

Other long-term assets	6,562		7,925
Total assets	$	744,686	$	764,535
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	142,442	$	143,934
Operating lease liabilities	30,199		29,014
Accrued liabilities	97,724		94,416

Gift card liability	10,018		10,551
Deferred revenue	13,757		14,441
Other current liabilities	3,235		3,214
Total current liabilities	297,375		295,570
Operating lease liabilities, net of current portion	147,843		141,334

Other long-term liabilities	4,701		4,980
Total liabilities	449,919		441,884
Commitments and contingencies (Note 6)
Stockholders’ equity:

Class A common stock, $0.00002 par value – 2,000,000,000 shares authorized;

SEC Form 10-Q filed by Stitch Fix Inc.