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: Dylan Douglas Carden - William Blair & Company L.L.C., Research Division - Analyst
: I'm just curious, maybe even follow up to that last answer. How are you thinking about the relationship now between marketing and sales? You're
kind of keeping the ratio relatively stable next year. Is that driven by the sales outlook? Or is that driving the sales outlook? And kind of what's the
strategy as it relates to retention and sort of new customer engagement?
Question: Dylan Douglas Carden - William Blair & Company L.L.C., Research Division - Analyst
: So if I can sort of follow up on that. I mean, is this -- I don't know if you're going to answer this per se, but as you think about sort of the active
customers you're left with now at the end of this year, and to your point about kind of unwinding past marketing spend or unwinding past growth,
do you feel -- you kind of mentioned the stability of some of those key metrics. Do you feel like this 3-some million is a more engaged core group?
Or are you still kind of weeding out some less efficient customer base in the model?
Question: Kunal Madhukar - UBS Investment Bank, Research Division - Analyst
: A quick numbers one and then a follow-up. So on the numbers one, you mentioned that U.K. had about 180 active clients, 180,000. So when we --
when I take that out from the 1Q numbers, that implies that on a Q-over-Q basis, your -- that would be a negative 5.5% in 1Q, which is worse than
the negative 5.1% in 4Q. -- which kind of tells me, and since you said that the expectation would be that in 1Q, there would be an improvement.
That would suggest that at least as far as the U.S. is concerned, you expect to add active clients. Is that right?
Question: Kunal Madhukar - UBS Investment Bank, Research Division - Analyst
: So in Q4, you lost 179,000 clients. Now if 180,000 clients are going to go out of the system in 1Q because U.K. would be a discontinued op?
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SEPTEMBER 18, 2023 / 9:00PM, SFIX.OQ - Q4 2023 Stitch Fix Inc Earnings Call
Question: Kunal Madhukar - UBS Investment Bank, Research Division - Analyst
: The down 3%. Okay.
Question: Kunal Madhukar - UBS Investment Bank, Research Division - Analyst
: Okay. Okay. Okay. Okay. Great. And then -- and I think this has been asked before. So I apologize, it takes me a bit to kind of understand stuff. But
the negative 15% to negative 20% revenue guide for the full year, how should we kind of think about it in terms of where you'll probably end up
with active clients versus where you will end up with LTM revenue per active client?
Question: Kunal Madhukar - UBS Investment Bank, Research Division - Analyst
: The stable pricing. Okay.
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