(Bloomberg) -- Stitch Fix Inc. is exploring an exit from the UK in fiscal year 2024 as it focuses on its styling business in the US, management said Tuesday in its third-quarter earnings release. The company entered that market four years ago, but “the macroeconomic environment and our business have changed.”
Stitch Fix is also reducing its distribution centers to three from five by not renewing the lease for its Bethlehem, Pennsylvania, distribution center later this year and closing its Dallas facility next calendar year. Management projected $7 million to $10 million in cash charges, to be paid over the next four fiscal quarters, for the restructuring.
Stitch Fix’s shares were up 4.6% in postmarket trading after announcing the cost-cutting measures and beating earnings and revenue estimates.
--With assistance from Ignacio Gonzalez.
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