Stitch Fix's stock fell roughly 24% in premarket trade on Wednesday after the firm lowered its annual sales and margin guidance.

In the first quarter, the business lost money. In the first quarter of last year, the online personal styling business received a tax benefit, which boosted its profitability.

The Science of Style at Stitch Fix - RStudio

The business now anticipates net revenue to grow by roughly 9% for the fiscal year ending July 30, down sharply from the nearly 15% growth it predicted in September.

Amazon and other companies are putting pressure on the startup that employs computers to help shoppers decorate their wardrobes.

To service more clients, the firm stated it will continue to extend its personalized shopping offering while also catering to more events.

For the second quarter in a straight, Stitch's revenue per active customer surpassed $500, achieving a new high of $524 across over 4.2 million users. The number of active clients increased by 11% year over year.

Net revenue increased 19% year over year to $581 million, owing to strong growth in the women's and children's categories. According to the corporation, revenue in the United Kingdom nearly doubled.

The adjusted loss per share was 2 cents, compared to a profit per share of 9 cents in the previous quarter.

It expects revenue to be about $513 million in the current quarter, which is in the middle of its projection range. According to the corporation, the EBITDA margin might fall to zero, with a best-case scenario of 1%.