The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Aneesha Sherman - Bernstein - Analyst
: Thank you for taking my question. Matt and David, I was wondering if you could start by telling us, reminding us a little bit about your customer
demographics in terms of household income and any other demographic features you think are relevant given the current changes in consumer
sentiment across income bands?
And then I have a follow-up regarding some of the comments that you've made previously in your presentation around market size. You're under
1% of the total accessible market as you define it in US apparel. Do you think that you need free style in order to expand that TAM? Or do you think
there is continued opportunity for expanded TAM with just the fixed model in terms of driving brand awareness and penetration? Thank you so
much.
Question: Aneesha Sherman - Bernstein - Analyst
: Really helpful. Thank you.
Question: Dana Telsey - Health Advisory Group - Analyst
: Hi. Good afternoon, everyone. As you think about the dynamic world of tariffs that we're in, how are you thinking of that impact on your pricing
and own brand versus national brands? And then as you've expanded the number of brands that you carry, what categories are you seeing that
are performing? What categories are being adjusted? Thank you.
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MARCH 11, 2025 / 9:00PM, SFIX.OQ - Q2 2025 Stitch Fix Inc Earnings Call
Question: Dana Telsey - Health Advisory Group - Analyst
: Thank you.
Question: Serge Severenchuk - UBS Investment Bank - Analyst
: This is Serge Severenchuk on behalf of Jay. Congrats on a nice quarter. My first question is on gross margins. Just wondering if you have any outlook
for 3Q, right? In 2Q, it looks like gross margins expanded about 105 basis points. So I was just wondering what were some of the drivers of that?
And similarly, do you have -- like what are you expecting to drive gross margin expansion or contraction in 3Q?
Question: Serge Severenchuk - UBS Investment Bank - Analyst
: Got it. Got it. And then just one more quick one, if I can. You briefly mentioned that March was strong, but just wondering if you can give any more
color on sort of quarter-to-date trends. anything you're seeing in February and March? Is it similar to what you were seeing in 2Q? Is it a little
stronger?
Question: Serge Severenchuk - UBS Investment Bank - Analyst
: Thank you for that.
Question: Dylan Carden - William Blair & Co LLC - Analyst
: Thanks. Maybe, David, just following from that line of thought. The comments that AOV go forward might present kind of a headwind to growth,
can you just unpack that a little bit?
Question: Dylan Carden - William Blair & Co LLC - Analyst
: Got it. And so, I guess, the flip side of that is that the growth that you're kind of forecasting at some point next fiscal year is more of an active client
growth story then and kind of continuing to push on spend per --?
Question: Dylan Carden - William Blair & Co LLC - Analyst
: Thank you both.
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