By Yasin Ebrahim

Investing.com — Stitch Fix (NASDAQ) Thursday reported a larger loss than it expected. The company stated that its plans are to reduce its salaried workforce in response to the inflation squeeze and to return to bricks & mortar shopping. 

Stitch Fix lost more than 10% after the report.  

The company a loss of $0.72 per share, wider than Wall Street forecasts for a loss of $0.58 per share as revenue decreased 8% to $492.9 million year-on-year, just shy of estimates for $493.7 million.

Stitch Fix used to be a Wall Street darling. But, the popularity of Stitch Fix has declined. The return of outdoor shopping as well as the ease in working from home have impacted the demand for its personalized apparel products. 

Year-over year, active clients declined by 5% to a total of 3.9 million.   

The company, flagging its recent business momentum and an uncertain macroeconomic environment, said it would cull its salaried positions by 15%, representing approximately 4% of roles in total. 

According to the company, job reductions will result in savings of between $40 million and $60 million over the next fiscal year.

Fourth quarter revenues were guided between $485million and $495million, in line with expectations for $494.09 millions.