Stitch Fix Inc Q2 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Simeon Avram Siegel - BMO Capital Markets Equity Research - Analyst : It might be a mouthful, but the 90-day RPAC is a helpful metric. Thanks for giving that. Do you want to give the actual dollar number that's there in addition to the growth rate? Do you plan on giving that metric going forward? And then do you have a similar 90-day type of active client growth metric? And then, Dan, just any color, I guess, the marketing conversation as you think about 3Q and full year. Any color on gross margin or non-marketing SG&A you can speak to?

Question: Simeon Avram Siegel - BMO Capital Markets Equity Research - Analyst : Great. And then just maybe holistically, you mentioned the higher margins of Freestyle, it's about as you scale that helps. Do you want to just talk through maybe why? So what makes Freestyle margins higher?

Question: Kunal Madhukar - UBS Investment Bank, Research Division - Analyst : A couple, if I could. One on the core Fix side and the other one on Freestyle. And so as you look at the core Fix side, the way I kind of understood was this high dollar recurrent customers were like $75,000 to $100,000 in aggregate. What you lost this quarter was like $161,000, which means that the gross adds would have come in much, much lower. Does that potentially point to like maybe a saturation out there in terms of you've already hit anyone that was ever interested in subscription, and so now like you are kind of looking at much lower gross add number in the future? That's on the core Fix side. On the Freestyle, as you look at like with the market kind of open, mobility opened up, Omicron gone, you are facing a lot more competition from off-line, online omnichannel retailers, the whole work. So as we think of like Freestyle economics going into the future, should we think of like a higher marketing intensity associated with Freestyle just because the competition is so much higher? And then a quick follow-up to that would be, if you are going to institute a search-based experience for customers, then where is the styling algo and all the data that you're using to kind of present just the right thing for the right customer? How does that work with search, like if I'm telling you exactly what I want? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 08, 2022 / 10:00PM, SFIX.OQ - Q2 2022 Stitch Fix Inc Earnings Call

Question: Kunal Madhukar - UBS Investment Bank, Research Division - Analyst : And if you don't mind, one quick follow-up question on one of the things that we had kind of heard all through is that -- you have a list of like a humongous number of people that have been Stitch Fix customers in the past that you could target with Freestyle. How good has the response been on that front?