Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jul. 29, 2023 | Sep. 15, 2023 | Jan. 28, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jul. 29, 2023 | ||
Current Fiscal Year End Date | --07-29 | ||
Document Transition Report | false | ||
Entity File Number | 001-38291 | ||
Entity Registrant Name | STITCH FIX, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 27-5026540 | ||
Entity Address, Address Line One | 1 Montgomery Street | ||
Entity Address, Address Line Two | Suite 1100 | ||
Entity Address, City or Town | San Francisco | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94104 | ||
City Area Code | 415 | ||
Local Phone Number | 882-7765 | ||
Title of 12(b) Security | Class A common stock, par value $0.00002 per share | ||
Trading Symbol | SFIX | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for the 2023 Annual Meeting of Stockholders to be filed with the U.S. Securities and Exchange Commission pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K are incorporated by reference in Part III, Items 10-14 of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0001576942 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Class A | |||
Document Information [Line Items] | |||
Entity Public Float | $ 412,419,941 | ||
Entity Common Stock, Shares Outstanding | 91,922,200 | ||
Common Class B | |||
Document Information [Line Items] | |||
Entity Public Float | $ 1,833,283 | ||
Entity Common Stock, Shares Outstanding | 25,405,020 |
Audit Information
Audit Information | 12 Months Ended |
Jul. 29, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | San Francisco, California |
Auditor Firm ID | 34 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 29, 2023 | Jul. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 239,437 | $ 130,935 |
Short-term investments | 18,161 | 82,049 |
Inventory, net | 137,176 | 197,251 |
Prepaid expenses and other current assets | 30,014 | 39,456 |
Income tax receivable | 673 | 27,561 |
Total current assets | 425,461 | 477,252 |
Long-term investments | 0 | 17,713 |
Income tax receivable, net of current portion | 0 | 26,091 |
Property and equipment, net | 79,757 | 103,375 |
Operating lease right-of-use assets | 106,098 | 132,179 |
Other long-term assets | 3,162 | 7,925 |
Total assets | 614,478 | 764,535 |
Current liabilities: | ||
Accounts payable | 99,317 | 143,934 |
Operating lease liabilities | 29,343 | 29,014 |
Accrued liabilities | 78,795 | 94,416 |
Gift card liability | 10,355 | 10,551 |
Deferred revenue | 11,551 | 14,441 |
Other current liabilities | 8,750 | 3,214 |
Total current liabilities | 238,111 | 295,570 |
Operating lease liabilities, net of current portion | 125,418 | 141,334 |
Other long-term liabilities | 3,639 | 4,980 |
Total liabilities | 367,168 | 441,884 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Additional paid-in capital | 615,236 | 522,658 |
Accumulated other comprehensive income (loss) | 527 | (3,527) |
Accumulated deficit | (338,413) | (166,440) |
Treasury stock at cost (2,302,141 and 2,302,141 shares) | (30,042) | (30,042) |
Total stockholders’ equity | 247,310 | 322,651 |
Total liabilities and stockholders’ equity | 614,478 | 764,535 |
Class A Common Stock | ||
Stockholders’ equity: | ||
Common stock | 1 | 1 |
Class B Common Stock | ||
Stockholders’ equity: | ||
Common stock | $ 1 | $ 1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 29, 2023 | Jul. 30, 2022 |
Treasury stock (in shares) | 2,302,141 | 2,302,141 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.00002 | $ 0.00002 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 90,217,226 | 86,187,911 |
Common stock, shares outstanding (in shares) | 90,217,226 | 86,187,911 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.00002 | $ 0.00002 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 25,405,020 | 25,405,020 |
Common stock, shares outstanding (in shares) | 25,405,020 | 25,405,020 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 31, 2021 | |
Income Statement [Abstract] | |||
Revenue, net | $ 1,638,423 | $ 2,072,812 | $ 2,101,258 |
Cost of goods sold | 946,902 | 1,164,338 | 1,153,622 |
Gross profit | 691,521 | 908,474 | 947,636 |
Selling, general, and administrative expenses | 869,318 | 1,116,519 | 1,010,997 |
Operating loss | (177,797) | (208,045) | (63,361) |
Interest income | 6,220 | 930 | 2,610 |
Other income (expense), net | 1,094 | (2,355) | (366) |
Total loss before income taxes | (170,483) | (209,470) | (61,117) |
Provision (benefit) for income taxes | 1,490 | (2,349) | (52,241) |
Net loss | (171,973) | (207,121) | (8,876) |
Other comprehensive income (loss): | |||
Change in unrealized gain (loss) on available-for-sale securities, net of tax | 1,738 | (2,050) | (1,503) |
Foreign currency translation | 2,316 | (4,888) | 2,186 |
Total other comprehensive income (loss), net of tax | 4,054 | (6,938) | 683 |
Comprehensive loss | (167,919) | (214,059) | (8,193) |
Net loss attributable to common stockholders: | |||
Basic | (171,973) | (207,121) | (8,876) |
Diluted | $ (171,973) | $ (207,121) | $ (8,876) |
Loss per share attributable to common stockholders: | |||
Basic (in dollars per share) | $ (1.50) | $ (1.90) | $ (0.08) |
Diluted (in dollars per share) | $ (1.50) | $ (1.90) | $ (0.08) |
Weighted-average shares used to compute loss per share attributable to common stockholders: | |||
Basic (in shares) | 114,684,980 | 108,762,589 | 105,975,403 |
Diluted (in shares) | 114,684,980 | 108,762,589 | 105,975,403 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | Treasury Stock |
Stockholders' equity, beginning balance (in shares) at Aug. 01, 2020 | 103,755,507 | |||||
Stockholders' equity, beginning balance at Aug. 01, 2020 | $ 401,037 | $ 2 | $ 348,750 | $ 2,728 | $ 49,557 | $ 0 |
Stockholders' equity, beginning balance (in shares) at Aug. 01, 2020 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of stock options (in shares) | 2,067,751 | |||||
Issuance of common stock upon exercise of stock options | 25,932 | 25,932 | ||||
Issuance of restricted stock units, net of tax withholdings (in shares) | 2,132,730 | |||||
Issuance of restricted stock units, net of tax withholdings | (64,316) | (64,316) | ||||
Stock-based compensation | 106,389 | 106,389 | ||||
Net loss | (8,876) | (8,876) | ||||
Other comprehensive income (loss), net of tax | 683 | 683 | ||||
Stockholders' equity, ending balance (in shares) at Jul. 31, 2021 | 107,955,988 | |||||
Stockholders' equity, ending balance at Jul. 31, 2021 | 460,849 | $ 2 | 416,755 | 3,411 | 40,681 | $ 0 |
Stockholders' equity, ending balance (in shares) at Jul. 31, 2021 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of stock options (in shares) | 176,977 | |||||
Issuance of common stock upon exercise of stock options | 1,534 | 1,534 | ||||
Issuance of restricted stock units, net of tax withholdings (in shares) | 3,459,966 | |||||
Issuance of restricted stock units, net of tax withholdings | (31,742) | (31,742) | ||||
Stock-based compensation | 136,111 | 136,111 | ||||
Repurchase of common stock (in shares) | (2,302,141) | |||||
Repurchase of common stock | (30,042) | $ (30,042) | ||||
Net loss | (207,121) | (207,121) | ||||
Other comprehensive income (loss), net of tax | (6,938) | (6,938) | ||||
Stockholders' equity, ending balance (in shares) at Jul. 30, 2022 | 111,592,931 | |||||
Stockholders' equity, ending balance at Jul. 30, 2022 | $ 322,651 | $ 2 | 522,658 | (3,527) | (166,440) | $ (30,042) |
Stockholders' equity, ending balance (in shares) at Jul. 30, 2022 | (2,302,141) | (2,302,141) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of stock options (in shares) | 121,687 | |||||
Issuance of common stock upon exercise of stock options | $ 161 | 161 | ||||
Issuance of restricted stock units, net of tax withholdings (in shares) | 6,209,769 | |||||
Issuance of restricted stock units, net of tax withholdings | (15,583) | (15,583) | ||||
Stock-based compensation | 108,000 | 108,000 | ||||
Net loss | (171,973) | (171,973) | ||||
Other comprehensive income (loss), net of tax | 4,054 | 4,054 | ||||
Stockholders' equity, ending balance (in shares) at Jul. 29, 2023 | 117,924,387 | |||||
Stockholders' equity, ending balance at Jul. 29, 2023 | $ 247,310 | $ 2 | $ 615,236 | $ 527 | $ (338,413) | $ (30,042) |
Stockholders' equity, ending balance (in shares) at Jul. 29, 2023 | (2,302,141) | (2,302,141) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 31, 2021 | |
Cash Flows from Operating Activities | |||
Net loss | $ (171,973) | $ (207,121) | $ (8,876) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Change in inventory reserves | (17,954) | 16,552 | 8,875 |
Stock-based compensation expense | 104,492 | 128,485 | 100,696 |
Depreciation and amortization | 43,296 | 37,185 | 29,929 |
Asset impairment | 18,190 | 6,154 | 0 |
Other | 2,118 | (235) | (3,568) |
Change in operating assets and liabilities: | |||
Inventory | 78,359 | (2,594) | (96,056) |
Prepaid expenses and other assets | 14,459 | 8,110 | (20,096) |
Income tax receivables | 52,979 | 1,069 | (31,700) |
Operating lease right-of-use assets and liabilities | (3,854) | 4,301 | (1,818) |
Accounts payable | (44,256) | 71,349 | (12,385) |
Accrued liabilities | (19,109) | (2,641) | 22,011 |
Deferred revenue | (2,899) | (3,679) | 5,082 |
Gift card liability | (197) | 649 | 1,313 |
Other liabilities | 4,179 | (2,189) | (9,082) |
Net cash provided by (used in) operating activities | 57,830 | 55,395 | (15,675) |
Cash Flows from Investing Activities | |||
Proceeds from sale of property and equipment | 842 | 0 | 0 |
Purchases of property and equipment | (19,012) | (46,351) | (35,256) |
Purchases of securities available-for-sale | (258) | (94,420) | (173,726) |
Sales of securities available-for-sale | 6,523 | 45,351 | 104,501 |
Maturities of securities available-for-sale | 76,231 | 105,653 | 143,574 |
Net cash provided by investing activities | 64,326 | 10,233 | 39,093 |
Cash Flows from Financing Activities | |||
Proceeds from the exercise of stock options, net | 161 | 1,534 | 25,932 |
Payments for tax withholdings related to vesting of restricted stock units | (15,583) | (31,742) | (64,316) |
Repurchase of common stock | 0 | (30,042) | 0 |
Other | (117) | 0 | (501) |
Net cash used in financing activities | (15,539) | (60,250) | (38,885) |
Effect of exchange rate changes on cash and cash equivalents | 1,885 | (4,228) | 1,797 |
Net increase (decrease) in cash and cash equivalents | 108,502 | 1,150 | (13,670) |
Cash and cash equivalents, beginning of the year | 130,935 | 129,785 | 143,455 |
Cash and cash equivalents, end of the year | 239,437 | 130,935 | 129,785 |
Supplemental Disclosure | |||
Cash paid for income taxes | 1,111 | 868 | 461 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities | |||
Purchases of property and equipment included in accounts payable and accrued liabilities | 1,226 | 2,443 | 3,803 |
Capitalized stock-based compensation | $ 6,421 | $ 7,626 | $ 5,693 |
Description of Business
Description of Business | 12 Months Ended |
Jul. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of BusinessStitch Fix, Inc. (“we,” “our,” “us,” or “the Company”) delivers personalization to our clients through the pairing of data science and human judgment. Currently, clients can engage with us in one of two ways that, combined, form an ecosystem of personalized experiences across styling, shopping, and inspiration: (1) by receiving a personalized shipment of items informed by our algorithms and sent by a Stitch Fix stylist (a “Fix”); or (2) by purchasing directly from our website or mobile app based on a personalized assortment of outfit and item recommendations (“Freestyle”). Clients can choose to schedule automatic shipments or order a Fix on demand after they fill out a style profile on our website or mobile app. After receiving a Fix, our clients purchase the items they want to keep and return the other items, if any. Freestyle utilizes our algorithms to recommend a personalized assortment of outfit and item recommendations that will update throughout the day and will continue to evolve as we learn more about the client. We are incorporated in Delaware and have operations in the United States and the United Kingdom (“UK”). In June 2023, we also announced that we would enter a consultation period, in accordance with UK law, to explore exiting the market in the UK. On August 24, 2023, we ended the consultation period, and made the decision to exit our business and wind down our operations in the UK. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jul. 29, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The consolidated financial statements include the accounts of Stitch Fix, Inc. and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Our fiscal year is a 52-week or 53-week period ending on the Saturday closest to July 31. The fiscal years ended July 29, 2023 (“fiscal 2023”), July 30, 2022 (“fiscal 2022”), and July 31, 2021 (“fiscal 2021”) consisted of 52 weeks. The fiscal year ending August 3, 2024 (“fiscal 2024”) will be 53 weeks. Segment Information We have one operating segment and one reportable segment as our chief operating decision maker, who is our Chief Executive Officer, reviews financial information on a consolidated basis for purposes of allocating resources and evaluating financial performance. Use of Estimates The preparation of our consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in our consolidated financial statements and accompanying footnotes. Significant estimates and assumptions are used for inventory, stock-based compensation expense, income taxes, and revenue recognition. Actual results could differ from those estimates, and such differences may be material to our consolidated financial statements. Change in Accounting Principle Effective August 1, 2021, we completed the implementation of a new inventory management process and system, which enhances our procure-to-pay processes. In connection with this implementation, we changed our inventory costing method from specific identification to the first-in-first-out (“FIFO”) method. We believe this change in accounting principle is preferable because it streamlines our inventory accounting process, is generally consistent with the physical flow of our inventories, and is more consistent with the inventory costing method used by industry peers. This change in accounting principle did not have a material effect on inventory, net or cost of goods sold for all periods presented; therefore, prior comparative financial statements have not been restated. Cash and Cash Equivalents Cash consists of bank deposits and amounts in transit from banks for client credit card and debit card transactions that will process in less than seven days. Cash equivalents consist of investments in short-term money market funds. Short-Term and Long-Term Investments Our short-term and long-term investments have been classified and accounted for as available-for-sale securities. We determine the appropriate classification of our investments at the time of purchase and reevaluate the classification at each balance sheet date. Available-for-sale securities with maturities of 12 months or less are classified as short-term and available-for-sale securities with maturities greater than 12 months are classified as long-term. Our available-for-sale securities are carried at fair value, with unrealized gains and losses, net of taxes, reported within accumulated other comprehensive income (loss) (“AOCI”) in stockholders’ equity. The cost of securities sold is based upon the specific identification method. For debt securities with an amortized cost basis in excess of estimated fair value, we determine what amount of that deficit, if any, is caused by expected credit losses. The portion of the deficit attributable to expected credit losses is recognized in other income (expense), net in our consolidated statements of income, and was immaterial during fiscal 2023. The allowance for expected credit losses on our available-for-sale debt securities was immaterial at both July 29, 2023 and July 30, 2022. We have elected to present accrued interest receivable separately from short-term and long-term investments in our consolidated balance sheets. Accrued interest receivable was $0.1 million and $0.3 million as of July 29, 2023, and July 30, 2022, respectively, and was recorded in prepaid expenses and other current assets in the consolidated balance sheets. We have also elected to exclude accrued interest receivable from the estimation of expected credit losses on our available-for-sale securities and reverse accrued interest receivable through interest income when amounts are determined to be uncollectible. We did not write off any accrued interest receivable during fiscal 2023 or fiscal 2022 . Foreign Currency The functional currency of our international subsidiary is the British pound sterling. For that subsidiary, we translate assets and liabilities to U.S. dollars using period-end exchange rates, and average monthly exchange rates for revenues, costs, and expenses. We record translation gains and losses in AOCI as a component of stockholders’ equity. Net foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to functional currency are recorded in other income (expense), net in the consolidated statements of operations and comprehensive loss. Inventory, net Inventory, net consists of finished goods which are recorded at the lower of cost or net realizable value using the first-in-first-out (FIFO) method. Gross inventory costs include both merchandise costs and in-bound freight costs. Inventory, net includes reserves for excess and slow-moving inventory we expect to write off based on historical trends, inventory we intend to clearance, damaged inventory, and shrinkage. Our total inventory reserves, which reduce inventory in our consolidated balance sheets, were $41.7 million and $59.6 million as of July 29, 2023 and July 30, 2022, respectively. During both fiscal 2023 and fiscal 2022 , we recorded additional specific reserves related to excess and slow-moving spring and summer inventory. Additionally, in fiscal 2023, in connection with the planned exit of operations in the UK, we recorded a specific inventory reserve to record anticipated losses on inventory in the UK at the lower of cost or net realizable value, based on projected sales through the exit of this business. Aside from these specific reserves, we have not made any material changes to our assumptions included in the calculations of the lower of cost or net realizable value reserves during fiscal 2023 or fiscal 2022 . Property and Equipment, net Property and equipment, net is recorded at cost less accumulated depreciation and amortization. Depreciation and amortization is recorded on a straight-line basis over the estimated useful lives of the respective assets. Repair and maintenance costs are expensed as incurred. The estimated useful lives of our assets are as follows: Estimated useful life Computer equipment and capitalized software 3 years Office furniture and equipment 5 years Leasehold improvements Shorter of lease term or estimated useful life We capitalize eligible costs to develop our proprietary systems, website, and mobile app. Capitalization of such costs begins when the preliminary project stage is completed and it is probable that the project will be completed and the software will be used to perform the function intended. A subsequent addition, modification, or upgrade to internal-use software is capitalized to the extent that it enhances the software’s functionality or extends its useful life. Costs related to design or maintenance are expensed as incurred. Leases Our leasing portfolio consists of operating leases, which include lease arrangements for our corporate offices, fulfillment centers, and, to a lesser extent, equipment. Operating leases with a term greater than one year are recorded on the consolidated balance sheets as operating lease right-of-use assets and operating lease liabilities at the commencement date. These balances are initially recorded at the present value of future minimum lease payments, which is calculated using our incremental borrowing rate and the expected lease term. Certain adjustments to our operating lease right-of-use assets may be required for items such as initial direct costs paid or incentives received. Impairment of Long-Lived Assets We review our long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated from the use of the asset and its eventual disposition. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount exceeds the fair value of the impaired assets. Assets to be disposed of are reported at the lower of their carrying amount or fair value less cost to sell. In fiscal 2023 , and in connection with the restructuring plan we first announced on June 9, 2022 (“2022 Restructuring Plan”), we identified the occurrence of triggering events requiring impairment testing. We recorded an asset impairment charge of $16.9 million, related to a portion of our corporate office space, which was allocated between operating lease right-of-use assets and property and equipment, net to record the corresponding assets at their estimated fair market value. In addition, we recorded an asset impairment charge of $1.3 million related to the property and equipment in the UK. Refer to Note 4, “Leases” and Note 13, “Restructuring” for further information. Revenue Recognition We generate revenue primarily from the sale of merchandise to clients in a Fix and when clients purchase merchandise directly from Freestyle. Clients create an online account on our website or mobile app, complete a style profile, and order a Fix or merchandise to be delivered on a specified date. Each Fix represents an offer made by us to the client to purchase merchandise. The client is charged a nonrefundable upfront styling fee before the Fix is shipped. As an alternative to the styling fee, we offer select clients the option to purchase a Style Pass. Style Pass clients pay a nonrefundable annual fee for unlimited Fixes that is credited towards merchandise purchases. If the offer to purchase merchandise is accepted, we charge the client the order amount for the accepted merchandise, net of the upfront styling fee or Style Pass annual fee. For each Fix, acceptance occurs when the client checks out the merchandise on our website or mobile app. We offer a discount to clients who purchase all of the items in the Fix. We recognize revenue through the following steps: (1) identification of the contract, or contracts, with the customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, we satisfy a performance obligation. Our styling fee and Style Pass arrangements represent the option to purchase merchandise. These fees and arrangements are not distinct within the context of the contract with our Fix customers and therefore do not give rise to separate performance obligations. Both the upfront styling fee and Style Pass annual fee are included in deferred revenue until the performance obligation is satisfied when the client exercises his or her option to purchase merchandise (i.e., upon checkout of a Fix) or when the option(s) to purchase merchandise expire(s). Revenue is recognized when control of the promised goods is transferred to the client. For a Fix, control is transferred when the client accepts or rejects the offer to purchase merchandise. Upon acceptance by purchasing one or more items within the Fix at checkout, the total amount of the order, including the upfront styling fee, is recognized as revenue. If none of the items within the Fix are accepted at checkout, the upfront styling fee is recognized as revenue at that time. The Style Pass annual fee is recognized at the earlier of (i) the time at which a client accepts and applies the Style Pass fee to an offer to purchase merchandise or (ii) upon expiry of the annual period. Under Style Pass arrangements, if a client does not accept any items within the Fix, the annual fee will continue to be deferred until it is applied to a future purchase or upon expiry of the annual period. If a client would like to exchange an item, we recognize revenue at the time the exchanged item is shipped, which coincides with the transfer of control to the customer. For a Freestyle purchase, control is transferred and revenue is recognized upon shipment to the client. We deduct discounts, sales tax, and estimated refunds to arrive at net revenue. Sales tax collected from clients is not considered revenue and is included in accrued liabilities until remitted to the taxing authorities. All shipping costs are accounted for in cost of goods sold and all handling costs are accounted for as fulfillment costs within selling, general, and administrative expense (“SG&A”), and are therefore not evaluated as a separate performance obligation. Discounts are recorded as a reduction to revenue when the order is accepted. We record a refund reserve based on our historical refund patterns. Our refund reserve, which is included in accrued liabilities in the consolidated balance sheets, was $6.6 million and $10.3 million as of July 29, 2023 and July 30, 2022, respectively. We have five types of contractual liabilities: (i) cash collections of upfront styling fees, which are included in deferred revenue and are recognized as revenue upon the earlier of application to a merchandise purchase or expiry of the offer, (ii) cash collections of Style Pass annual fees, which are included in deferred revenue and are recognized upon the earlier of application to a merchandise purchase or expiry of the Style Pass annual period, (iii) unredeemed gift cards, which are included in gift card liability and recognized as revenue upon usage or inclusion in gift card breakage estimates, (iv) referral credits, which are included in other current liabilities and are recognized as revenue when used, and (v) cash collections of Freestyle purchases, which are included in deferred revenue and are recognized as revenue upon shipment. We sell gift cards to clients and establish a liability based upon the face value of such gift cards. We reduce the liability and recognize revenue upon usage of the gift card. If a gift card is not used, we will recognize estimated gift card breakage revenue proportionately to customer usage of gift cards over the expected gift card usage period, subject to requirements to remit balances to governmental agencies. All commissions paid to third parties upon issuance of gift cards are recognized in SG&A as incurred, as on average, gift cards are used within a one-year period. Similarly, referral credits that are considered incremental costs of obtaining a contract with a customer are recognized in SG&A when issued, as on average, referral credits are used within a one-year period. We expect deferred revenue for upfront styling fees, Freestyle orders, and Style Pass annual fees to be recognized within one year. On average, our gift card liability and other current liabilities are also recognized within one year. The following table summarizes the balances of contractual liabilities included in deferred revenue, gift card liability, and other current liabilities as of the dates indicated: (in thousands) July 29, 2023 July 30, 2022 Deferred revenue: Upfront styling fees $ 6,260 $ 8,422 Style Pass annual fees 4,521 4,337 Freestyle orders 770 1,682 Total deferred revenue $ 11,551 $ 14,441 Gift card liability $ 10,355 $ 10,551 Other current liabilities: Referral credits $ 401 $ 684 The following table summarizes net revenue recognized during fiscal 2023 , which was previously included in deferred revenue, gift card liability, and other current liabilities at July 30, 2022: (in thousands) Revenue Recognized From Amounts Previously Included in Deferred Balances at July 30, 2022 Upfront styling fees $ 8,350 Style Pass annual fees 4,337 Freestyle orders 1,160 Gift card liability 2,456 Referral credits 545 Cost of Goods Sold Cost of goods sold consists of the costs of merchandise, expenses for shipping to and from clients and inbound freight, inventory write-offs and changes in our inventory reserve, payment processing fees, and packaging materials costs, offset by the recoverable cost of merchandise estimated to be returned. Selling, General, and Administrative Expenses SG&A expenses consist primarily of compensation and benefits costs, including stock-based compensation expense, for our employees including our stylist, fulfillment center operations, data analytics, merchandising, engineering, client experience, marketing, and corporate personnel. SG&A expenses also include marketing and advertising, third-party logistics costs, facility costs for our fulfillment centers and offices, professional services fees, information technology, and depreciation and amortization. Advertising Expenses Marketing expense is recorded in selling, general, and administrative expenses in the consolidated statements of operations and comprehensive loss, and the largest component of our marketing expense is advertising expense. Costs associated with the production of advertising, such as writing, copy, printing, and other production costs are expensed as incurred. Costs associated with communicating advertising on television and radio are expensed the first time the advertisement is run. Online advertising costs are expensed as incurred. W e recorded a dvertising expense of $119.5 million , $203.4 million , and $185.5 million for fiscal 2023, fiscal 2022, and fiscal 2021, respectively. Beginning in the second quarter of fiscal 2023, we began including costs for influencer campaigns within advertising expense and have revised advertising expense for fiscal 2022, and fiscal 2021 to reflect the inclusion of these costs. Marketing Programs We have a client referral program under which we issue credits for future purchases to clients when their referral results in a new client who has ordered a Fix or made a purchase on Freestyle. We record a liability at the time of issuing the credit and reduce the liability upon application of the credit to a client’s purchase. We also have an affiliate program under which we make cash payments to lifestyle or fashion influencers or others who refer clients in high volumes. Amounts related to both of these programs are included within selling, general, and administrative expenses in the consolidated statements of operations and comprehensive loss. Income Taxes We account for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which they are expected to be realized or settled. Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the amount that is more likely than not to be realized . We consider many factors when assessing the likelihood of future realization, including our recent cumulative loss, earnings expectations in earlier future years, and other relevant factors. We recognize tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. We recognize interest and penalties related to unrecognized tax benefits, if any, as income tax expense. Stock-Based Compensation Expense We measure stock-based compensation expense associated with option awards made to employees and members of our board of directors based on the estimated fair values of the awards at the grant date using the Black-Scholes option-pricing model. We measure stock-based compensation expense associated with restricted stock unit (“RSU”) awards made to employees and members of our board of directors based on the fair values of those awards at the grant date. For options and RSU’s with service conditions only, stock-based compensation expense is recognized, net of forfeitures, over the requisite service period using the straight-line method such that an expense is only recognized for those awards that we expect to vest. For RSU’s with performance conditions, the Company will settle bonuses for a fixed dollar amount by issuing a variable number of RSU’s, and stock-based compensation expense is recorded over the fiscal year in which performance is assessed. Except for performance-based stock awards, forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures of performance-based stock awards are recorded in the period in which they occur. We record stock-based compensation of stock options granted to employees by estimating the fair value of stock-based awards using the Black-Scholes option-pricing model and amortizing the fair value of the stock-based awards granted over the applicable vesting period of the awards on a straight-line basis. The fair value of stock options granted to employees was estimated at the grant date using the Black-Scholes option-pricing model with the following assumptions: • Fair Value of Common Stock - The fair value of the shares of common stock underlying our stock options has been determined based on market prices. • Expected Term - The expected term represents the period that our stock options are expected to be outstanding and is determined for the vast majority of our awards using historical averages. • Expected Volatility - The expected volatility was estimated based on an even blend of our historical volatility since IPO and the implied volatility of Stitch Fix call options in the 30 days preceding a stock option grant. • Risk-Free Interest Rate - The risk-free interest rate is based on the U.S. Treasury zero coupon notes in effect at the time of grant for periods corresponding with the expected term of the option. • Expected Dividend - We have not paid dividends on our common stock and do not anticipate paying dividends on our common stock; therefore, we use an expected dividend yield of zero. Comprehensive Loss Comprehensive loss represents all changes in stockholders’ equity during a period from sources other than transactions with stockholders. Comprehensive loss includes the net loss for the period, the gain (loss) due to foreign currency translation, and the change in unrealized gain (loss) on available-for-sale securities. Concentration of Credit Risks We are subject to concentrations of credit risk principally from cash and cash equivalents and investment securities. The majority of our cash is held by two financial institutions within the United States. Our cash balances held by these institutions exceed federally insured limits. The associated risk of concentration for cash is mitigated by banking with credit-worthy institutions. The associated risk of concentration for cash equivalents and investments is mitigated by maintaining a diversified portfolio of highly rated instruments. No client accounted for greater than 10% of total revenue, net in fiscal 2023, fiscal 2022, or fiscal 2021. Recently Adopted Accounting Pronouncements There are no new recent accounting pronouncements that are expected to have a material impact on our consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jul. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Our financial instruments consist of cash and cash equivalents, short-term and long-term investments, accounts payable, and accrued liabilities. At July 29, 2023 and July 30, 2022, the carrying values of cash, accounts payable, and accrued liabilities approximated fair value due to their short-term nature. We measure our cash equivalents and investments at fair value within Level 1 or Level 2 of the fair value hierarchy because we value these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs, respectively. Our cash equivalents and investments accounted for as available-for-sale securities that were measured at fair value on a recurring basis as of July 29, 2023 and July 30, 2022 were as follows: July 29, 2023 July 30, 2022 (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 80,251 $ — $ — $ 80,251 $ 16,267 $ — $ — $ 16,267 Investments: U.S. Treasury securities 7,226 — — 7,226 42,260 — — 42,260 Commercial paper — — — — — 2,985 — 2,985 Corporate bonds — 10,935 — 10,935 — 54,517 — 54,517 Total $ 87,477 $ 10,935 $ — $ 98,412 $ 58,527 $ 57,502 $ — $ 116,029 There were no transfers of financial assets or liabilities into or out of Level 1, Level 2, or Level 3 for fiscal 2023 and fiscal 2022 . The following table sets forth the amortized cost, gross unrealized losses, and fair values of our investments accounted for as available-for-sale securities as of July 29, 2023 and July 30, 2022: July 29, 2023 July 30, 2022 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Investments: U.S. Treasury securities $ 7,266 $ — $ (40) $ 7,226 $ 43,163 $ — $ (903) $ 42,260 Commercial paper — — — — 2,985 — — 2,985 Corporate bonds 11,069 — (134) 10,935 55,526 — (1,009) 54,517 Total $ 18,335 $ — $ (174) $ 18,161 $ 101,674 $ — $ (1,912) $ 99,762 The fair value and gross unrealized losses for those investments that were in a continuous unrealized loss position as of July 29, 2023 were as follows: Less Than 12 Months More Than 12 Months Total (in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Investments: U.S. Treasury securities $ 265 $ (1) $ 6,961 $ (39) $ 7,226 $ (40) Corporate bonds — — 10,935 (134) 10,935 (134) Total $ 265 $ (1) $ 17,896 $ (173) $ 18,161 $ (174) The fair value and gross unrealized losses for those investments that were in a continuous unrealized loss position as of July 30, 2022 were as follows: Less Than 12 Months More Than 12 Months Total (in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Investments: U.S. Treasury securities $ 42,260 $ (903) $ — $ — $ 42,260 $ (903) Corporate bonds 24,940 (547) 29,577 (462) 54,517 (1,009) Total $ 67,200 $ (1,450) $ 29,577 $ (462) $ 96,777 $ (1,912) The total fair value of investments in a continuous unrealized loss and the related gross unrealized losses have both decreased since July 30, 2022, due to maturities of our investments during fiscal 2023 , and approaching maturities of securities in our portfolio. We evaluate securities for expected credit losses on a quarterly basis with consideration given to the financial condition and near-term prospects of the issuer, whether we intend to sell the securities, and whether it is more likely than not that we will be required to sell the securities before recovery of their amortized cost basis. As of July 29, 2023, the losses on our available-for-sale securities were considered to be a direct effect of the increase in interest rates and not the creditworthiness of the issuers. We have the current intent and ability to retain these securities until maturity or recovery of the amortized cost basis. Therefore, expected credit losses as of July 29, 2023 were immaterial. The fair values of available-for-sale securities by contractual maturity as of July 29, 2023 were as follows: July 29, 2023 (in thousands) One Year or Less One Year Through Five Years Over Five Years Total Investments: U.S. Treasury securities $ 7,226 $ — $ — $ 7,226 Corporate bonds 10,935 — — 10,935 Total $ 18,161 $ — $ — $ 18,161 |
Leases
Leases | 12 Months Ended |
Jul. 29, 2023 | |
Leases [Abstract] | |
Leases | Leases Our leasing portfolio includes lease arrangements for our corporate offices, fulfillment centers, and, to a lesser extent, equipment. Such leases generally have original lease terms between five The future lease payments as of July 29, 2023 were as follows: (in thousands) July 29, 2023 2024 $ 36,623 2025 32,898 2026 32,037 2027 26,342 2028 22,544 Thereafter 28,767 Total undiscounted future minimum lease payments 179,211 Less: imputed interest (24,450) Total discounted future minimum lease payments $ 154,761 The weighted average remaining term for our leases as of July 29, 2023 and July 30, 2022 was 5.6 years and 6.3 years, respectively. The weighted average discount rate for our leases as of July 29, 2023 and July 30, 2022 was 5.2% and 4.7%, respectively. Supplemental Cash Flow Information For the Fiscal Year Ended (in thousands) July 29, 2023 July 30, 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 38,340 $ 34,261 Operating lease right-of-use assets obtained in exchange for operating lease liabilities, net of impairments and other reductions (1) (411) 40,067 (1) In fiscal 2023, we amended our lease agreement for our fulfillment center in Phoenix, AZ, to extend the lease term by five years. In fiscal 2023, we also recorded a $14.2 million impairment charge related to a portion of our corporate office space. Refer to Note 2, “Significant Accounting Policies” and Note 13, “Restructuring” for further details on the impairment charge. Operating Lease Cost Operating lease cost is recorded on a straight-line basis over the lease term. Certain leases contain variable payments, which are expensed as incurred and not included in our operating lease right-of-use assets and operating lease liabilities. These amounts primarily include payments for maintenance, utilities, taxes, and insurance on our office and fulfillment center leases. The components of our rent expense, which are recorded in selling, general, and administrative expense in the consolidated statement of operations and comprehensive loss, were as follows: For the Fiscal Year Ended (in thousands) July 29, 2023 July 30, 2022 Operating lease cost $ 34,592 $ 33,615 Variable lease costs 8,065 8,009 Short-term lease costs 41 354 Operating lease impairment (1) 14,168 5,428 Sublease income (2) (8,486) (4,230) Total $ 48,380 $ 43,176 (1) Refer to Note 13, “Restructuring” for more details. (2) During fiscal 2022 and fiscal 2023, we had subleases for certain portions of fulfillment centers and our corporate offices due to the reduction in square footage needs for current operations and our recent commitment to a more distributed workforce for corporate employees. We may continue to seek sublease arrangements in fiscal 2024 for certain corporate offices and fulfillment centers as needed. |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Jul. 29, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment, net consisted of the following: (in thousands) July 29, 2023 July 30, 2022 Computer equipment $ 9,005 $ 9,281 Office furniture and equipment 51,073 53,999 Leasehold improvements 51,382 54,247 Capitalized software 105,483 84,605 Construction in progress — 2,573 Building and land — 430 Total property and equipment 216,943 205,135 Less: accumulated depreciation and amortization (137,186) (101,760) Property and equipment, net $ 79,757 $ 103,375 Depreciation and amortization expense for fiscal 2023, fiscal 2022, and fiscal 2021 was $42.3 million, $35.0 million, and $27.6 million, respectively. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Jul. 29, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following: (in thousands) July 29, 2023 July 30, 2022 Compensation and related benefits $ 13,627 $ 11,319 Advertising 6,956 15,579 Sales taxes 5,358 7,136 Shipping and freight 8,783 10,304 Accrued accounts payable 4,378 5,814 Inventory purchases 25,934 24,712 Sales refund reserve 6,591 10,314 Other 7,168 9,238 Total accrued liabilities $ 78,795 $ 94,416 |
Credit Agreement
Credit Agreement | 12 Months Ended |
Jul. 29, 2023 | |
Debt Disclosure [Abstract] | |
Credit Agreement | Credit Agreement We are party to an amended and restated credit agreement, entered into June 2, 2021 and amended on July 29, 2022 (the “Amended Credit Agreement”) with Silicon Valley Bank, a division of First-Citizens Bank & Trust Company (successor by purchase to the Federal Deposit Insurance Corporation as Receiver for Silicon Valley Bridge Bank, N.A. (as successor of Silicon Valley Bank)), and other lenders, to provide a revolving line of credit of up to $100.0 million, including a letter of credit sub-facility in the aggregate amount of $30.0 million, and a swingline sub-facility in the aggregate amount of $40.0 million. We also have the option to request an incremental facility of up to an additional $150.0 million from one or more of the lenders under the Amended Credit Agreement. Under the terms of the Amended Credit Agreement, revolving loans may be either Secured Overnight Financing Rate (“SOFR”) Loans or ABR Loans. Outstanding SOFR Loans incur interest at the Adjusted Term SOFR, which is defined in the Amended Credit Agreement as Term SOFR plus the Term SOFR Adjustment), plus a margin of 2.25%. Outstanding ABR Loans incur interest at the highest of (a) the Prime Rate, as published by the Wall Street Journal, (b) the federal funds rate in effect for such day plus 0.50%, and (c) the Adjusted Term SOFR for a one-month tenor in effect on such day plus 1.00%, in each case plus a margin of 1.25%. We will be charged a commitment fee of 0.25% for committed but unused amounts. The revolving line of credit under the Amended Credit Agreement will terminate on May 31, 2024, unless the termination date is extended at the election of the lenders. Our obligations under the Amended Credit Agreement and any hedging or cash management agreements entered into with any lender thereunder are secured by substantially all of our current and future property, rights, and assets, including, but not limited to, cash, goods, equipment, contractual rights, financial assets, and intangible assets. The Amended Credit Agreement contains covenants limiting the ability under certain circumstances to, among other things, dispose of assets, undergo a change in control, merge or consolidate, make acquisitions, incur debt, incur liens, pay dividends, repurchase stock, and make investments, in each case subject to certain exceptions. The Amended Credit Agreement also contains financial covenants requiring us to maintain minimum free cash flow and an adjusted current ratio above specified levels, measured in each case at the end of each fiscal quarter. The Amended Credit Agreement contains events of default that include, among others, non-payment of principal, interest, or fees, breach of covenants, inaccuracy of representations and warranties, cross defaults to certain other indebtedness, bankruptcy and insolvency events, and material judgments. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jul. 29, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contingencies We record a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We also disclose material contingencies when we believe a loss is not probable but reasonably possible. Accounting for contingencies requires us to use judgment related to both the likelihood of a loss and the estimate of the amount or range of loss. Although we cannot predict with assurance the outcome of any litigation or tax matters, we do not believe there are currently any such actions that, if resolved unfavorably, would have a material impact on our operating results, financial position, and cash flows. On August 26, 2022, a class action lawsuit alleging violations of federal securities laws was filed by certain of our stockholders in the U.S. District Court for the Northern District of California, naming as defendants us, certain of our officers and directors and filed an amended complaint on August 15, 2023. The lawsuit alleges violations of the Securities Exchange Act of 1934, as amended, by us and our officers for allegedly making materially false and misleading statements regarding our Freestyle offering between December 2020 and June 2022. The plaintiffs seek unspecified monetary damages and other relief. On March 17, 2023, a derivative action was filed against our directors in the same court, alleging the same violations of securities laws as alleged in the Class Action and breach of fiduciary duties. On October 11, 2018, October 26, 2018, November 16, 2018, and December 10, 2018, four putative class action lawsuits alleging violations of the federal securities laws were filed by certain of our stockholders in the U.S. District Court for the Northern District of California, naming as defendants us and certain of our officers. The four lawsuits each make the same allegations of violations of the Securities Exchange Act of 1934, as amended, by us and our officers for allegedly making materially false and misleading statements regarding our active client growth and strategy with respect to television advertising between June 2018 and October 2018. The plaintiffs seek unspecified monetary damages and other relief. The four lawsuits have been consolidated and a lead plaintiff has been appointed. On September 18, 2019, the lead plaintiff in the consolidated class action lawsuits (the “Class Action”) filed a consolidated complaint for violation of the federal securities laws. On October 28, 2019, we and other defendants filed a motion to dismiss the consolidated complaint. The lead plaintiff filed an opposition to the motion to dismiss on December 9, 2019, and we and the other defendants filed our reply in support of our motion to dismiss on December 30, 2019. The court granted our motion to dismiss on September 30, 2020 but allowed the lead plaintiff to file an amended complaint. On November 6, 2020, the lead plaintiff filed his amended complaint. We filed a motion to dismiss the amended complaint on December 7, 2020. The lead plaintiff filed an opposition to the motion to dismiss on January 8, 2021, and we filed our reply in support of our motion to dismiss on January 22, 2021. The court granted our motion to dismiss on October 1, 2021. On October 29, 2021, the plaintiffs filed a notice of appeal to the Ninth Circuit Court of Appeals. On October 19, 2022, the United States Court of Appeals for the Ninth Circuit affirmed the district court's dismissal of the complaint. The lead plaintiff did not file a petition to the Supreme Court by the January 17, 2023 deadline. On December 12, 2018, a derivative action was filed against our directors in the same court, alleging the same violations of securities laws as alleged in the Class Action and breach of fiduciary duties. On December 12, 2019, a second derivative action was filed against our directors in the same court, alleging the same violations of securities laws and breach of fiduciary duties as the other derivative action. The two derivative actions have been related to each other and to the Class Action, and all the related cases are now proceeding before a single judge in the U.S. District Court for the Northern District of California. The derivative actions have been stayed pending resolution of the plaintiffs’ appeals of the dismissal of the Class Action pursuant to the parties’ stipulation. On February 15, 2023, the court entered orders dismissing both derivative actions without prejudice. Indemnifications In the ordinary course of business, we may provide indemnifications of varying scope and terms to vendors, directors, officers, and other parties with respect to certain matters. We have not incurred any material costs as a result of such indemnifications and have not accrued any liabilities related to such obligations in our consolidated financial statements. Purchase Commitments As of July 29, 2023, we had $168.0 million of enforceable and legally binding inventory purchase commitments, predominantly due within one year. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Jul. 29, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The tables below present the changes in AOCI by component and, if applicable, the reclassifications out of AOCI for fiscal 2023 and fiscal 2022 : Changes in Accumulated Other Comprehensive Income (Loss) (in thousands) Available-for-sale Securities Foreign Currency Translation Total Balance at July 30, 2022 $ (2,340) $ (1,187) $ (3,527) Other comprehensive income before reclassifications (1) 1,593 2,316 3,909 Amounts reclassified from AOCI 145 — 145 Net change in AOCI 1,738 2,316 4,054 Balance at July 29, 2023 $ (602) $ 1,129 $ 527 Changes in Accumulated Other Comprehensive Income (Loss) (in thousands) Available-for-sale Securities Foreign Currency Translation Total Balance at July 31, 2021 $ (290) $ 3,701 $ 3,411 Other comprehensive loss before reclassifications (1) (1,873) (4,888) (6,761) Amounts reclassified from AOCI (177) — (177) Net change in AOCI (2,050) (4,888) (6,938) Balance at July 30, 2022 $ (2,340) $ (1,187) $ (3,527) |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jul. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock Plans 2011 Equity Incentive Plan In 2011, we adopted the 2011 Equity Incentive Plan (the “2011 Plan”). The 2011 Plan provided for the grant of stock-based awards to employees, directors, and non-employees under terms and provisions established by the Board of Directors. The 2011 Plan allowed for the grant of incentive stock options or nonqualified stock options as well as restricted stock units, restricted stock, and stock appreciation rights. Only incentive and nonqualified stock options were granted under the 2011 Plan. Employee stock option awards generally vested 25% on the first anniversary of the grant date with the remaining shares subject to the option vesting ratably over the next three years subject to the employee’s continued service with the Company. Options generally expire after 10 years. Effective upon our initial public offering in 2017, the 2011 Plan was replaced by the 2017 Incentive Plan. 2017 Incentive Plan In November 2017, our Board of Directors and stockholders adopted our 2017 Incentive Plan (the “2017 Plan”). The remaining shares available for issuance under our 2011 Plan became reserved for issuance under the 2017 Plan. Our 2017 Plan provides for the grant of Class A incentive stock options to employees, including employees of our subsidiary, and for the grant of nonqualified stock options, stock appreciation rights, restricted stock awards, RSU awards, performance stock awards, performance cash awards, and other forms of stock awards to employees, directors, and consultants, including employees and consultants of our subsidiaries. Employee stock option awards generally begin to vest six months after the grant date with the remaining shares subject to the option vesting ratably over the next 30 months. Options generally expire after 10 years. RSU awards made to employees generally vest ratably on a quarterly basis subject to the employee’s continued service with the Company. The number of shares authorized for issuance under the 2017 Plan was 38,257,771 shares of Class A common stock as of July 29, 2023. The following table summarizes the shares available for grant under the 2017 Plan: Shares Available for Grant Balance at July 30, 2022 4,461,798 Authorized 5,464,539 Granted (11,569,298) Forfeited 8,855,115 Balance at July 29, 2023 7,212,154 2019 Inducement Plan In October 2019, our Board of Directors adopted our 2019 Inducement Plan (the “2019 Plan”). Our 2019 Plan provides for the grant of Class A nonqualified stock options and RSU awards to individuals who satisfy the standards for inducement grants under the relevant Nasdaq Stock Market rules. As of July 29, 2023, the number of shares authorized for issuance under the 2019 Plan was 10,750,000 shares of Class A common stock and the number of shares available for grant was 1,201,427. Stock Options Stock option activity under the 2011 Plan, 2017 Plan, and 2019 Plan was as follows: Options Outstanding Number of Weighted- Weighted- Average Remaining Contractual Life (in years) Aggregate Balance at July 30, 2022 4,703,564 $ 21.07 7.58 $ 638 Granted 6,428,078 4.22 Exercised (121,687) 1.32 Forfeited (2,903,845) 23.70 Balance at July 29, 2023 8,106,110 $ 7.06 8.78 $ 4,770 Options vested and exercisable at July 29, 2023 2,619,022 $ 12.75 6.90 $ 552 Options vested and expected to vest at July 29, 2023 7,488,969 $ 7.30 8.70 $ 4,271 The weight ed-average grant date fair value of options granted during fiscal 2023, fiscal 2022, and fiscal 2021 was $2.72, $6.26, and $29.07 per share, respectively. The total grant date fair value of options that vested during fiscal 2023, fiscal 2022, and fiscal 2021 was $11.8 million, $14.0 million, and $13.3 million, respectively. The aggregate intrinsic value of options exercised during fiscal 2023, fiscal 2022, and fiscal 2021 was $0.4 million, $3.5 million, and $78.3 million, respectively. The aggregate intrinsic value of options exercised is the difference between the fair value of the underlying common stock on the date of exercise and the exercise price for in-the-money stock options. Restricted Stock Units Employee RSUs are granted under the 2017 Plan and 2019 Plan, settle into Class A common stock, and generally vest ratably on a quarterly basis subject to the employee’s continued service with the Company. The following table summarizes the RSU award activity under the 2017 Plan and 2019 Plan: Unvested RSUs Class A Common Stock Weighted- Unvested at July 30, 2022 19,217,622 $ 16.09 Granted 8,441,220 4.25 Vested (6,209,769) 12.43 Forfeited (9,993,496) 14.81 Unvested at July 29, 2023 11,455,577 $ 10.47 Performance-Based Stock Awards The Company incurs stock-based compensation expense under compensation arrangements with certain of its employees under which the Company will settle bonuses for a fixed dollar amount by issuing a variable number of restricted stock units. The number of restricted stock units issued will be based on the Company’s trailing seven-day average share price following the Company’s public release of fiscal 2023 financial results. The awards have both service and performance conditions. These awards are classified as liability-based awards in accrued expenses in the accompanying consolidated balance sheets, which are measured based on the fair value of the award at the end of each reporting period until settled. The Company records stock-based compensation related to accrued compensation in which it intends to settle in shares of the Company’s common stock. However, it is the Company’s discretion whether this compensation will ultimately be paid in stock or cash, as it has the right to dictate the form of these payments up until the date they are paid. Stock-based compensation expense is recorded over the fiscal year in which performance is assessed. Stock-Based Compensation Expense Stock-based compensation expense for options and RSUs granted to employees was $104.5 million, $128.5 million, and $100.7 million for fiscal 2023, fiscal 2022, and fiscal 2021, respectively . As a result of the 2022 Restructuring Plan, described in Note 13, “Restructuring,” stock-based compensation expense decreased by $4.4 million in fiscal 2023 due to forfeitures of previously granted awards above our estimate. Stock-based compensation expense is included in selling, general, and administrative expenses in the consolidated statements of operations and comprehensive loss. The Company recognized no income tax benefit from stock-based compensation expense during fiscal 2023 and fiscal 2022 as the Company currently maintains a full valuation allowance against its net deferred tax assets in jurisdictions where material stock-based compensation expense is incurred. During fiscal 2021, the Company recognized a material income tax benefit from stock-based compensation expense due to the net operating loss carryback provisions of the CARES Act. As of July 29, 2023, the total unrecognized compensation expense related to unvested options and RSUs, net of estimated forfeitures, was $113.3 million , which we expect to recognize over an estimated weighted average period of 2.3 years. The fair value of stock options granted to employees was estimated at the grant date using the Black-Scholes option-pricing model with the following assumptions: For the Fiscal Year Ended July 29, 2023 July 30, 2022 July 31, 2021 Expected term (in years) 3.2 - 5.5 3.1 - 5.5 5.3 - 6.3 Volatility 80.3 - 87.3% 62.1 - 79.2% 55.5 - 55.9% Risk free interest rate 3.6 - 4.4% 0.8 - 2.9% 0.3 - 1.1% Dividend yield — % — % — % |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The domestic and foreign components of loss before income taxes were as follows: For the Fiscal Year Ended (in thousands) July 29, 2023 July 30, 2022 July 31, 2021 Income (loss) before income taxes: United States $ (172,334) $ (210,852) $ (62,341) Foreign 1,851 1,382 1,224 Total loss before income taxes $ (170,483) $ (209,470) $ (61,117) The components of the provision (benefit) for income tax expense were as follows: For the Fiscal Year Ended (in thousands) July 29, 2023 July 30, 2022 July 31, 2021 Current: Federal $ 157 $ 88 $ (49,552) State (253) (2,472) (2,562) Foreign 1,273 570 (191) Total current 1,177 (1,814) (52,305) Deferred: Foreign 313 (535) 64 Total deferred 313 (535) 64 Total income tax provision (benefit) $ 1,490 $ (2,349) $ (52,241) The reconciliation of our effective tax rate to the statutory federal rate was as follows: For the Fiscal Year Ended (in thousands, except percentages) July 29, 2023 July 30, 2022 July 31, 2021 Taxes at federal statutory rate $ (35,801) 21.0 % $ (43,989) 21.0 % $ (12,835) 21.0 % State taxes, net of federal effect (351) 0.2 % (2,731) 1.3 % (2,417) 4.0 % Stock-based compensation 15,273 (9.0) % 8,909 (4.3) % (34,314) 56.1 % CARES Act carryback benefit — 0.0 % — 0.0 % (13,571) 22.2 % Change in valuation allowance 28,195 (16.5) % 41,262 (19.7) % 21,789 (35.7) % R&D credits (8,426) 4.9 % (7,921) 3.8 % (13,582) 22.2 % Uncertain tax positions 31 0.0 % 18 0.0 % (40) 0.1 % Return to provision 334 (0.2) % (208) 0.1 % 783 (1.3) % Other 2,235 (1.3) % 2,311 (1.1) % 1,946 (3.1) % Effective tax rate $ 1,490 (0.9) % $ (2,349) 1.1 % $ (52,241) 85.5 % The components of net deferred tax assets were as follows: (in thousands) July 29, 2023 July 30, 2022 Deferred tax assets: Inventory reserve and UNICAP $ 16,514 $ 25,867 Accruals and reserves 2,829 5,180 Research and development credits 44,923 35,843 Capitalized research and development costs 31,416 — Stock-based compensation 10,679 16,487 Deferred revenue 1,095 390 Operating lease liability 40,423 43,280 Net operating losses 49,734 52,751 Other 1,996 2,001 Gross deferred tax assets 199,609 181,799 Less: valuation allowance (154,757) (126,463) Deferred tax assets, net of valuation allowance 44,852 55,336 Deferred tax liabilities: Depreciation and amortization (16,306) (20,221) Operating lease right-of-use assets (27,505) (33,254) Other (561) (1,110) Gross deferred tax liabilities (44,372) (54,585) Net deferred tax assets, net of valuation allowance $ 480 $ 751 Our effective tax rate and provision for income taxes increased in fiscal 2023 as compared to fiscal 2022 , primarily due to additional foreign income taxes and less reserve releases due to lapses in statutes of limitation. Our effective tax rate and benefit for income taxes decreased from the fiscal 2021 to the fiscal 2022 , primarily due to the reversal of stock-based compensation expenses and the absence of the prior year net operating loss carryback provisions of the CARES Act that were not in effect for the current year. We have not recognized a deferred tax liability related to unremitted foreign earnings because future tax costs associated with future remittances are not expected to be significant. Beginning January 1, 2022, the Tax Cuts and Jobs Act (the "Tax Act”) eliminated the option to deduct research and development expenditures in the current year and requires taxpayers to capitalize such expenses pursuant to Internal Revenue Code (“IRC”) Section 174. The capitalized expenses are amortized over a five-year period for domestic expenses. As a result of this provision of the Tax Act, deferred tax assets related to capitalized research expenses increased by $31.4 million, partially offset by amortization on research expenses. As of July 29, 2023 and July 30, 2022 , we had federal net operating loss carryforwards of $152.7 million and $165.3 million, respectively, which will be carried forward indefinitely. As of July 29, 2023 and July 30, 2022, we had federal research and development tax credit carryforwards of $49.5 million and $38.7 million, respectively. The research and development tax credits will expire beginning in 2036, if not utilized. As of July 29, 2023 and July 30, 2022, we had state net operating loss carryforwards of $274.7 million and $256.0 million, respectively. These state net operating loss carryforwards will expire, if not utilized, beginning in 2025. As of July 29, 2023, and July 30, 2022, we had California research and development tax credit carryforwards of $23.9 million and $21.4 million, respectively, which are not subject to expiration. Utilization of the net operating loss carryforwards, tax credits, and other tax attributes may be subject to various limitations due to the ownership change limitations provided by IRC Section 382 and similar state provisions. The annual limitation may result in the expiration of net operating losses and credits before their utilization and reduce our ability to offset future income with our tax attributes. Uncertain Tax Positions A reconciliation of our unrecognized tax benefits is as follows: (in thousands) July 29, 2023 July 30, 2022 July 31, 2021 Balance at the beginning of the year $ 26,106 $ 23,625 $ 16,693 Lapse of statute of limitations (474) (2,191) (1,909) Increase related to prior period tax positions 1,134 309 495 Decrease related to prior period tax positions — (12) — Increase related to current year tax positions 3,150 4,375 8,346 Balance at the end of the year $ 29,916 $ 26,106 $ 23,625 The amount of unrecognized tax benefits relating to our tax positions is subject to change based on future events including, but not limited to, the settlements of ongoing audits and/or the expiration of applicable statutes of limitations. Although the outcomes and timing of such events are highly uncertain, we anticipate that the balance of the liability for unrecognized tax benefits and related deferred tax assets will decrease by $1.2 million during the next 12 months due to lapses of applicable statutes of limitation. Our liability for uncertain tax positions as of July 29, 2023, includes $1.4 million related to amounts that would impact our current and future tax expense. We recognize interest related to uncertain tax positions in our provision for income taxes. We file income tax returns in the U.S. federal and various state and local jurisdictions, as well as in the UK. As of July 29, 2023, our fiscal 2016 through fiscal 2020 tax returns are subject to potential examination in one or more jurisdictions. We regularly assess whether it is more likely than not that we will realize our deferred tax assets in each taxing jurisdiction in which we operate. We consider many factors when assessing the likelihood of future realization, including our recent cumulative loss, earnings expectations in earlier future years, and other relevant factors. We continue to record a full valuation allowance on our U.S. and state net deferred tax assets due to cumulative historical losses. The valuation allowance primarily relates to federal and state deferred tax assets, including unrealized credit carryforwards and net operating losses. The valuation allowance increased by $28.3 million in fiscal 2023, and by $48.9 million in fiscal 2022 . A reconciliation of our valuation allowance was as follows: (in thousands) July 29, 2023 July 30, 2022 Valuation allowance at the beginning of the year $ 126,463 $ 77,604 Valuation allowance charged to expense 35,836 54,383 Valuation allowance credited to other accounts (7,542) (5,524) Valuation allowance at the end of the year $ 154,757 $ 126,463 |
Loss Per Share Attributable to
Loss Per Share Attributable to Common Stockholders and Common Stock | 12 Months Ended |
Jul. 29, 2023 | |
Earnings Per Share [Abstract] | |
Loss Per Share Attributable to Common Stockholders and Common Stock | Loss Per Share Attributable to Common Stockholders and Common Stock Basic and diluted loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities: Class A and Class B common stock. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share. Each share of Class B common stock is convertible at any time at the option of the stockholder into one share of Class A common stock. Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. For the calculation of diluted loss per share, net loss attributable to common stockholders for basic loss per share is adjusted by the effect of dilutive securities. Diluted net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding, including all potentially dilutive common shares. In periods of loss, there are no potentially dilutive common shares to add to the weighted-average number of common shares outstanding. The undistributed losses are allocated based on the contractual participation rights of the Class A and Class B common shares as if the losses for the year have been distributed. As the liquidation and dividend rights are identical, the undistributed loss is allocated on a proportionate basis. The table below presents a reconciliation of the numerator and denominator used in the calculation of basic and diluted loss per share attributable to Class A and Class B common stockholders: (in thousands except share and per share amounts) July 29, 2023 July 30, 2022 July 31, 2021 Numerator: Net loss attributable to Class A and Class B common stockholders $ (171,973) $ (207,121) $ (8,876) Denominator: Weighted-average shares of common stock – basic 114,684,980 108,762,589 105,975,403 Weighted-average shares of common stock – diluted 114,684,980 108,762,589 105,975,403 Loss per share attributable to Class A and Class B common stockholders: Basic $ (1.50) $ (1.90) $ (0.08) Diluted $ (1.50) $ (1.90) $ (0.08) As the Company has reported net loss for each of the periods presented, all potentially dilutive securities were considered antidilutive. The following common stock equivalents were excluded from the computation of diluted loss per share because their effect would have been antidilutive for the periods presented: July 29, 2023 July 30, 2022 July 31, 2021 Restricted stock units that settle into Class A common stock 11,455,577 19,217,622 10,264,925 Stock options to purchase Class A common stock 7,297,653 3,629,617 2,361,055 Stock options to purchase Class B common stock 808,457 1,073,947 1,289,427 Total 19,561,687 23,921,186 13,915,407 Share Repurchase Program In January 2022, the Company's Board of Directors authorized a share repurchase program to repurchase up to $150.0 million of our outstanding Class A common stock, with no expiration date (the “2022 Repurchase Program”). The actual timing, number, and value of shares repurchased in the future will be determined by the Company in its discretion and will depend on a number of factors, including market conditions, applicable legal requirements, our capital needs, and whether there is a better alternative use of capital. We did not repurchase any shares in fiscal 2023 or fiscal 2021 . As of July 29, 2023, $120.0 million remained available under the 2022 Repurchase Program authorization. The table below summarizes the share repurchase activity in fiscal 2022 under our share repurchase program: July 30, 2022 Number of shares repurchased 2,302,141 Weighted-average price per share $ 13.03 Aggregate purchase price (in thousands) (1) $ 30,042 (1) Amount includes broker commissions |
Restructuring
Restructuring | 12 Months Ended |
Jul. 29, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In June 2022, we announced the 2022 Restructuring Plan to reduce our future fixed and variable operating costs and allow us to centralize key capabilities, strengthen decision-making to drive efficiencies, and ensure we are allocating resources to our most critical priorities. In fiscal 2022 , our implementation of the 2022 Restructuring Plan reduced our then-current employee workforce by approximately 4%, including approximately 15% of our then-salaried positions. During fiscal 2023, we recorded $0.9 million of additional restructuring charges consisting of severance and employee-related benefits, related to the 2022 Restructuring Plan. In furtherance of and as an expansion of the 2022 Restructuring Plan, in January 2023, we implemented a plan of termination (“January 2023 Reduction in Force”). The January 2023 Reduction in Force reduced our then-current employee workforce by approximately 6%, including approximately 20% of our then-salaried positions. In connection with the 2023 Reduction in Force, our then-Chief Executive Officer agreed that she would step down from her employment with the Company and from the Board of Directors. We also recorded an impairment charge to a portion of our corporate office space due to a change in the use of this space, as a furtherance of the 2022 Restructuring Plan, and based on further deterioration in the San Francisco sublease market, making recoverability unlikely. The January 2023 Reduction in Force also included the closure of our Salt Lake City fulfillment center. During fiscal 2023, we recorded the following related to the January 2023 Reduction in Force: • $17.9 million of restructuring charges related to severance and employee-related benefits and other charges, including $16.8 million of cash restructuring charges, which were substantially all paid during fiscal 2023; • $16.9 million of asset impairment charges related to a portion of our corporate office space, as described above; • $1.8 million of accelerated depreciation expense related to assets at our Salt Lake City fulfillment center, which we determined would not be transferred to other fulfillment centers in our network and for which we did not have immediate plans to use. In furtherance of and as an expansion of the 2022 Restructuring Plan, we announced in June 2023 the intended closure of our fulfillment centers in Bethlehem, Pennsylvania and Dallas, Texas (the “Bethlehem and Dallas Closures”). During fiscal 2023, we recorded the following related to this action: • $1.3 million of restructuring charges related to severance and employee-related benefits. We expect substantially all of these cash payments to be completed by the end of the quarter ending April 27, 2024, and • $1.3 million of accelerated depreciation expense and other restructuring costs. Related to the Bethlehem and Dallas Closures, we estimate that we will incur between $5 million and $7 million in additional cash restructuring charges, primarily consisting of severance and employee-related benefits, and to a lesser extent, transportation costs to redistribute inventory to other fulfillment centers and other closure costs. We expect these expenses will be incurred over the first three fiscal quarters of fiscal 2024, with substantially all of these cash payments to be completed by the end of the third fiscal quarter ending April 27, 2024. Additionally, in June 2023, we also announced that we would enter a consultation period, in accordance with UK law, to explore exiting the market in the UK. On August 24, 2023, we ended the consultation period, and made the decision to exit our business and wind down our operations in the UK. During fiscal 2023, we recorded the following related to this action: • $2.8 million liability to account for losses expected to arise from firm purchase commitments for future receipts of inventory in the UK; • $1.3 million of asset impairment charges related to the property and equipment in the UK; and • $0.6 million specific inventory reserve to record anticipated losses on inventory in the UK at the lower of cost or net realizable value, based on projected sales through the exit of this business. Related to the UK exit, we estimate that we will incur additional cash restructuring charges between $4 million and $5 million, which primarily represent severance and employee-related benefits and the related taxes. We expect these expenses to be incurred over the next two fiscal quarters, with substantially all of these cash payments to be completed by the end of the second fiscal quarter ending January 27, 2024. The components of total restructuring charges were as follows: For the Fiscal Year Ended (in thousands) July 29, 2023 July 30, 2022 Cash restructuring charges: Severance and employee-related benefits (1) $ 18,299 $ 10,869 Other (4) 3,526 — Non-cash restructuring charges: Asset impairments (1, 2) 18,190 6,154 Accelerated depreciation (1) 2,805 — Inventory impairment (3) 553 719 Other (1) 1,364 — Total restructuring $ 44,737 $ 17,742 (1) Recognized in selling, general, and administrative expenses on the consolidated statements of operations and comprehensive loss. (2) Fiscal 2023 includes impairments of both operating lease right-of-use assets and property and equipment. (3) Recognized in cost of goods sold on the consolidated statements of operations and comprehensive loss. (4) Primarily comprised of losses expected to arise from firm purchase commitments for future receipts of inventory. The following table provides the changes in the Company’s restructuring related liabilities, which are included within accounts payable and accrued liabilities on the consolidated balance sheets: (in thousands) Severance and Employee Related Benefits and Other Balance at July 30, 2022 $ 290 Charges incurred 21,825 Cash payments (17,387) Balance at July 29, 2023 $ 4,728 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jul. 29, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsIn June 2023, we also announced that we would enter a consultation period, in accordance with UK law, to explore exiting the market in the UK. On August 24, 2023, we ended the consultation period, and made the decision to exit our business and wind down our operations in the UK. We anticipate that we will send our last Fixes to UK clients and cease operations of our UK business in the first quarter of fiscal 2024, and at such time, we will consider the UK business a discontinued operation. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 29, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The consolidated financial statements include the accounts of Stitch Fix, Inc. and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Fiscal Year | Our fiscal year is a 52-week or 53-week period ending on the Saturday closest to July 31. The fiscal years ended July 29, 2023 (“fiscal 2023”), July 30, 2022 (“fiscal 2022”), and July 31, 2021 (“fiscal 2021”) consisted of 52 weeks. The fiscal year ending August 3, 2024 (“fiscal 2024”) will be 53 weeks. |
Segment Information | Segment InformationWe have one operating segment and one reportable segment as our chief operating decision maker, who is our Chief Executive Officer, reviews financial information on a consolidated basis for purposes of allocating resources and evaluating financial performance. |
Use of Estimates | Use of Estimates The preparation of our consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in our consolidated financial statements and accompanying footnotes. Significant estimates and assumptions are used for inventory, stock-based compensation expense, income taxes, and revenue recognition. Actual results could differ from those estimates, and such differences may be material to our consolidated financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash consists of bank deposits and amounts in transit from banks for client credit card and debit card transactions that will process in less than seven days. Cash equivalents consist of investments in short-term money market funds. |
Short Term and Long term Investments | Short-Term and Long-Term Investments Our short-term and long-term investments have been classified and accounted for as available-for-sale securities. We determine the appropriate classification of our investments at the time of purchase and reevaluate the classification at each balance sheet date. Available-for-sale securities with maturities of 12 months or less are classified as short-term and available-for-sale securities with maturities greater than 12 months are classified as long-term. Our available-for-sale securities are carried at fair value, with unrealized gains and losses, net of taxes, reported within accumulated other comprehensive income (loss) (“AOCI”) in stockholders’ equity. The cost of securities sold is based upon the specific identification method. For debt securities with an amortized cost basis in excess of estimated fair value, we determine what amount of that deficit, if any, is caused by expected credit losses. The portion of the deficit attributable to expected credit losses is recognized in other income (expense), net in our consolidated statements of income, and was immaterial during fiscal 2023. The allowance for expected credit losses on our available-for-sale debt securities was immaterial at both July 29, 2023 and July 30, 2022. We have elected to present accrued interest receivable separately from short-term and long-term investments in our consolidated balance sheets. Accrued interest receivable was $0.1 million and $0.3 million as of July 29, 2023, and July 30, 2022, respectively, and was recorded in prepaid expenses and other current assets in the consolidated balance sheets. We have also elected to exclude accrued interest receivable from the estimation of expected credit losses on our available-for-sale securities and reverse accrued interest receivable through interest income when amounts are determined to be uncollectible. We did not write off any accrued interest receivable during fiscal 2023 or fiscal 2022 . |
Foreign Currency | Foreign CurrencyThe functional currency of our international subsidiary is the British pound sterling. For that subsidiary, we translate assets and liabilities to U.S. dollars using period-end exchange rates, and average monthly exchange rates for revenues, costs, and expenses. We record translation gains and losses in AOCI as a component of stockholders’ equity. Net foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to functional currency are recorded in other income (expense), net in the consolidated statements of operations and comprehensive loss. |
Inventory, net | Inventory, netInventory, net consists of finished goods which are recorded at the lower of cost or net realizable value using the first-in-first-out (FIFO) method. Gross inventory costs include both merchandise costs and in-bound freight costs. Inventory, net includes reserves for excess and slow-moving inventory we expect to write off based on historical trends, inventory we intend to clearance, damaged inventory, and shrinkage. |
Property and Equipment, net | Property and Equipment, net Property and equipment, net is recorded at cost less accumulated depreciation and amortization. Depreciation and amortization is recorded on a straight-line basis over the estimated useful lives of the respective assets. Repair and maintenance costs are expensed as incurred. |
Leases | LeasesOur leasing portfolio consists of operating leases, which include lease arrangements for our corporate offices, fulfillment centers, and, to a lesser extent, equipment. Operating leases with a term greater than one year are recorded on the consolidated balance sheets as operating lease right-of-use assets and operating lease liabilities at the commencement date. These balances are initially recorded at the present value of future minimum lease payments, which is calculated using our incremental borrowing rate and the expected lease term. Certain adjustments to our operating lease right-of-use assets may be required for items such as initial direct costs paid or incentives received. |
Impairment of Long-Lived Assets | Impairment of Long-Lived AssetsWe review our long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated from the use of the asset and its eventual disposition. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount exceeds the fair value of the impaired assets. Assets to be disposed of are reported at the lower of their carrying amount or fair value less cost to sell. |
Revenue Recognition | Revenue Recognition We generate revenue primarily from the sale of merchandise to clients in a Fix and when clients purchase merchandise directly from Freestyle. Clients create an online account on our website or mobile app, complete a style profile, and order a Fix or merchandise to be delivered on a specified date. Each Fix represents an offer made by us to the client to purchase merchandise. The client is charged a nonrefundable upfront styling fee before the Fix is shipped. As an alternative to the styling fee, we offer select clients the option to purchase a Style Pass. Style Pass clients pay a nonrefundable annual fee for unlimited Fixes that is credited towards merchandise purchases. If the offer to purchase merchandise is accepted, we charge the client the order amount for the accepted merchandise, net of the upfront styling fee or Style Pass annual fee. For each Fix, acceptance occurs when the client checks out the merchandise on our website or mobile app. We offer a discount to clients who purchase all of the items in the Fix. We recognize revenue through the following steps: (1) identification of the contract, or contracts, with the customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, we satisfy a performance obligation. Our styling fee and Style Pass arrangements represent the option to purchase merchandise. These fees and arrangements are not distinct within the context of the contract with our Fix customers and therefore do not give rise to separate performance obligations. Both the upfront styling fee and Style Pass annual fee are included in deferred revenue until the performance obligation is satisfied when the client exercises his or her option to purchase merchandise (i.e., upon checkout of a Fix) or when the option(s) to purchase merchandise expire(s). Revenue is recognized when control of the promised goods is transferred to the client. For a Fix, control is transferred when the client accepts or rejects the offer to purchase merchandise. Upon acceptance by purchasing one or more items within the Fix at checkout, the total amount of the order, including the upfront styling fee, is recognized as revenue. If none of the items within the Fix are accepted at checkout, the upfront styling fee is recognized as revenue at that time. The Style Pass annual fee is recognized at the earlier of (i) the time at which a client accepts and applies the Style Pass fee to an offer to purchase merchandise or (ii) upon expiry of the annual period. Under Style Pass arrangements, if a client does not accept any items within the Fix, the annual fee will continue to be deferred until it is applied to a future purchase or upon expiry of the annual period. If a client would like to exchange an item, we recognize revenue at the time the exchanged item is shipped, which coincides with the transfer of control to the customer. For a Freestyle purchase, control is transferred and revenue is recognized upon shipment to the client. We deduct discounts, sales tax, and estimated refunds to arrive at net revenue. Sales tax collected from clients is not considered revenue and is included in accrued liabilities until remitted to the taxing authorities. All shipping costs are accounted for in cost of goods sold and all handling costs are accounted for as fulfillment costs within selling, general, and administrative expense (“SG&A”), and are therefore not evaluated as a separate performance obligation. Discounts are recorded as a reduction to revenue when the order is accepted. We record a refund reserve based on our historical refund patterns. Our refund reserve, which is included in accrued liabilities in the consolidated balance sheets, was $6.6 million and $10.3 million as of July 29, 2023 and July 30, 2022, respectively. We have five types of contractual liabilities: (i) cash collections of upfront styling fees, which are included in deferred revenue and are recognized as revenue upon the earlier of application to a merchandise purchase or expiry of the offer, (ii) cash collections of Style Pass annual fees, which are included in deferred revenue and are recognized upon the earlier of application to a merchandise purchase or expiry of the Style Pass annual period, (iii) unredeemed gift cards, which are included in gift card liability and recognized as revenue upon usage or inclusion in gift card breakage estimates, (iv) referral credits, which are included in other current liabilities and are recognized as revenue when used, and (v) cash collections of Freestyle purchases, which are included in deferred revenue and are recognized as revenue upon shipment. We sell gift cards to clients and establish a liability based upon the face value of such gift cards. We reduce the liability and recognize revenue upon usage of the gift card. If a gift card is not used, we will recognize estimated gift card breakage revenue proportionately to customer usage of gift cards over the expected gift card usage period, subject to requirements to remit balances to governmental agencies. All commissions paid to third parties upon issuance of gift cards are recognized in SG&A as incurred, as on average, gift cards are used within a one-year period. Similarly, referral credits that are considered incremental costs of obtaining a contract with a customer are recognized in SG&A when issued, as on average, referral credits are used within a one-year period. We expect deferred revenue for upfront styling fees, Freestyle orders, and Style Pass annual fees to be recognized within one year. On average, our gift card liability and other current liabilities are also recognized within one year. |
Cost of Goods Sold | Cost of Goods Sold Cost of goods sold consists of the costs of merchandise, expenses for shipping to and from clients and inbound freight, inventory write-offs and changes in our inventory reserve, payment processing fees, and packaging materials costs, offset by the recoverable cost of merchandise estimated to be returned. |
Selling, General, and Administrative Expenses | Selling, General, and Administrative Expenses SG&A expenses consist primarily of compensation and benefits costs, including stock-based compensation expense, for our employees including our stylist, fulfillment center operations, data analytics, merchandising, engineering, client experience, marketing, and corporate personnel. SG&A expenses also include marketing and advertising, third-party logistics costs, facility costs for our fulfillment centers and offices, professional services fees, information technology, and depreciation and amortization. |
Advertising Expenses | Advertising Expenses Marketing expense is recorded in selling, general, and administrative expenses in the consolidated statements of operations and comprehensive loss, and the largest component of our marketing expense is advertising expense. Costs associated with the production of advertising, such as writing, copy, printing, and other production costs are expensed as incurred. Costs associated with communicating advertising on television and radio are expensed the first time the advertisement is run. Online advertising costs are expensed as incurred. W e recorded a dvertising expense of $119.5 million , $203.4 million , and $185.5 million for fiscal 2023, fiscal 2022, and fiscal 2021, respectively. Beginning in the second quarter of fiscal 2023, we began including costs for influencer campaigns within advertising expense and have revised advertising expense for fiscal 2022, and fiscal 2021 to reflect the inclusion of these costs. |
Marketing Programs | Marketing Programs We have a client referral program under which we issue credits for future purchases to clients when their referral results in a new client who has ordered a Fix or made a purchase on Freestyle. We record a liability at the time of issuing the credit and reduce the liability upon application of the credit to a client’s purchase. We also have an affiliate program under which we make cash payments to lifestyle or fashion influencers or others who refer clients in high volumes. Amounts related to both of these programs are included within selling, general, and administrative expenses in the consolidated statements of operations and comprehensive loss. |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which they are expected to be realized or settled. Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the amount that is more likely than not to be realized . We consider many factors when assessing the likelihood of future realization, including our recent cumulative loss, earnings expectations in earlier future years, and other relevant factors. We recognize tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. We recognize interest and penalties related to unrecognized tax benefits, if any, as income tax expense. |
Stock-Based Compensation Expense | Stock-Based Compensation Expense We measure stock-based compensation expense associated with option awards made to employees and members of our board of directors based on the estimated fair values of the awards at the grant date using the Black-Scholes option-pricing model. We measure stock-based compensation expense associated with restricted stock unit (“RSU”) awards made to employees and members of our board of directors based on the fair values of those awards at the grant date. For options and RSU’s with service conditions only, stock-based compensation expense is recognized, net of forfeitures, over the requisite service period using the straight-line method such that an expense is only recognized for those awards that we expect to vest. For RSU’s with performance conditions, the Company will settle bonuses for a fixed dollar amount by issuing a variable number of RSU’s, and stock-based compensation expense is recorded over the fiscal year in which performance is assessed. Except for performance-based stock awards, forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures of performance-based stock awards are recorded in the period in which they occur. We record stock-based compensation of stock options granted to employees by estimating the fair value of stock-based awards using the Black-Scholes option-pricing model and amortizing the fair value of the stock-based awards granted over the applicable vesting period of the awards on a straight-line basis. The fair value of stock options granted to employees was estimated at the grant date using the Black-Scholes option-pricing model with the following assumptions: • Fair Value of Common Stock - The fair value of the shares of common stock underlying our stock options has been determined based on market prices. • Expected Term - The expected term represents the period that our stock options are expected to be outstanding and is determined for the vast majority of our awards using historical averages. • Expected Volatility - The expected volatility was estimated based on an even blend of our historical volatility since IPO and the implied volatility of Stitch Fix call options in the 30 days preceding a stock option grant. • Risk-Free Interest Rate - The risk-free interest rate is based on the U.S. Treasury zero coupon notes in effect at the time of grant for periods corresponding with the expected term of the option. • Expected Dividend - We have not paid dividends on our common stock and do not anticipate paying dividends on our common stock; therefore, we use an expected dividend yield of zero. |
Stock-Based Compensation Expense | Stock-Based Compensation Expense We measure stock-based compensation expense associated with option awards made to employees and members of our board of directors based on the estimated fair values of the awards at the grant date using the Black-Scholes option-pricing model. We measure stock-based compensation expense associated with restricted stock unit (“RSU”) awards made to employees and members of our board of directors based on the fair values of those awards at the grant date. For options and RSU’s with service conditions only, stock-based compensation expense is recognized, net of forfeitures, over the requisite service period using the straight-line method such that an expense is only recognized for those awards that we expect to vest. For RSU’s with performance conditions, the Company will settle bonuses for a fixed dollar amount by issuing a variable number of RSU’s, and stock-based compensation expense is recorded over the fiscal year in which performance is assessed. Except for performance-based stock awards, forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures of performance-based stock awards are recorded in the period in which they occur. We record stock-based compensation of stock options granted to employees by estimating the fair value of stock-based awards using the Black-Scholes option-pricing model and amortizing the fair value of the stock-based awards granted over the applicable vesting period of the awards on a straight-line basis. The fair value of stock options granted to employees was estimated at the grant date using the Black-Scholes option-pricing model with the following assumptions: • Fair Value of Common Stock - The fair value of the shares of common stock underlying our stock options has been determined based on market prices. • Expected Term - The expected term represents the period that our stock options are expected to be outstanding and is determined for the vast majority of our awards using historical averages. • Expected Volatility - The expected volatility was estimated based on an even blend of our historical volatility since IPO and the implied volatility of Stitch Fix call options in the 30 days preceding a stock option grant. • Risk-Free Interest Rate - The risk-free interest rate is based on the U.S. Treasury zero coupon notes in effect at the time of grant for periods corresponding with the expected term of the option. • Expected Dividend - We have not paid dividends on our common stock and do not anticipate paying dividends on our common stock; therefore, we use an expected dividend yield of zero. |
Comprehensive Loss | Comprehensive LossComprehensive loss represents all changes in stockholders’ equity during a period from sources other than transactions with stockholders. Comprehensive loss includes the net loss for the period, the gain (loss) due to foreign currency translation, and the change in unrealized gain (loss) on available-for-sale securities. |
Concentration of Credit Risks | Concentration of Credit Risks We are subject to concentrations of credit risk principally from cash and cash equivalents and investment securities. The majority of our cash is held by two financial institutions within the United States. Our cash balances held by these institutions exceed federally insured limits. The associated risk of concentration for cash is mitigated by banking with credit-worthy institutions. The associated risk of concentration for cash equivalents and investments is mitigated by maintaining a diversified portfolio of highly rated instruments. No client accounted for greater than 10% of total revenue, net in fiscal 2023, fiscal 2022, or fiscal 2021. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements There are no new recent accounting pronouncements that are expected to have a material impact on our consolidated financial statements. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Jul. 29, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Assets | The estimated useful lives of our assets are as follows: Estimated useful life Computer equipment and capitalized software 3 years Office furniture and equipment 5 years Leasehold improvements Shorter of lease term or estimated useful life Property and equipment, net consisted of the following: (in thousands) July 29, 2023 July 30, 2022 Computer equipment $ 9,005 $ 9,281 Office furniture and equipment 51,073 53,999 Leasehold improvements 51,382 54,247 Capitalized software 105,483 84,605 Construction in progress — 2,573 Building and land — 430 Total property and equipment 216,943 205,135 Less: accumulated depreciation and amortization (137,186) (101,760) Property and equipment, net $ 79,757 $ 103,375 |
Summary of Contractual Liabilities and Revenue Recognized | The following table summarizes the balances of contractual liabilities included in deferred revenue, gift card liability, and other current liabilities as of the dates indicated: (in thousands) July 29, 2023 July 30, 2022 Deferred revenue: Upfront styling fees $ 6,260 $ 8,422 Style Pass annual fees 4,521 4,337 Freestyle orders 770 1,682 Total deferred revenue $ 11,551 $ 14,441 Gift card liability $ 10,355 $ 10,551 Other current liabilities: Referral credits $ 401 $ 684 The following table summarizes net revenue recognized during fiscal 2023 , which was previously included in deferred revenue, gift card liability, and other current liabilities at July 30, 2022: (in thousands) Revenue Recognized From Amounts Previously Included in Deferred Balances at July 30, 2022 Upfront styling fees $ 8,350 Style Pass annual fees 4,337 Freestyle orders 1,160 Gift card liability 2,456 Referral credits 545 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jul. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Short-term and Long-term Investments Accounted for as Available-for-sale Measured at Fair Value on Recurring Basis | ur cash equivalents and investments accounted for as available-for-sale securities that were measured at fair value on a recurring basis as of July 29, 2023 and July 30, 2022 were as follows: July 29, 2023 July 30, 2022 (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 80,251 $ — $ — $ 80,251 $ 16,267 $ — $ — $ 16,267 Investments: U.S. Treasury securities 7,226 — — 7,226 42,260 — — 42,260 Commercial paper — — — — — 2,985 — 2,985 Corporate bonds — 10,935 — 10,935 — 54,517 — 54,517 Total $ 87,477 $ 10,935 $ — $ 98,412 $ 58,527 $ 57,502 $ — $ 116,029 |
Schedule of Amortized Cost, Gross Unrealized Gains (Losses) and Fair Value of Available-for-sale Investments | investments accounted for as available-for-sale securities as of July 29, 2023 and July 30, 2022: July 29, 2023 July 30, 2022 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Investments: U.S. Treasury securities $ 7,266 $ — $ (40) $ 7,226 $ 43,163 $ — $ (903) $ 42,260 Commercial paper — — — — 2,985 — — 2,985 Corporate bonds 11,069 — (134) 10,935 55,526 — (1,009) 54,517 Total $ 18,335 $ — $ (174) $ 18,161 $ 101,674 $ — $ (1,912) $ 99,762 |
Schedule of Unrealized Loss on Investments | The fair value and gross unrealized losses for those investments that were in a continuous unrealized loss position as of July 29, 2023 were as follows: Less Than 12 Months More Than 12 Months Total (in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Investments: U.S. Treasury securities $ 265 $ (1) $ 6,961 $ (39) $ 7,226 $ (40) Corporate bonds — — 10,935 (134) 10,935 (134) Total $ 265 $ (1) $ 17,896 $ (173) $ 18,161 $ (174) The fair value and gross unrealized losses for those investments that were in a continuous unrealized loss position as of July 30, 2022 were as follows: Less Than 12 Months More Than 12 Months Total (in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Investments: U.S. Treasury securities $ 42,260 $ (903) $ — $ — $ 42,260 $ (903) Corporate bonds 24,940 (547) 29,577 (462) 54,517 (1,009) Total $ 67,200 $ (1,450) $ 29,577 $ (462) $ 96,777 $ (1,912) |
Schedule of Fair Value of Available-for-sale Securities By Contractual Maturity | he fair values of available-for-sale securities by contractual maturity as of July 29, 2023 were as follows: July 29, 2023 (in thousands) One Year or Less One Year Through Five Years Over Five Years Total Investments: U.S. Treasury securities $ 7,226 $ — $ — $ 7,226 Corporate bonds 10,935 — — 10,935 Total $ 18,161 $ — $ — $ 18,161 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jul. 29, 2023 | |
Leases [Abstract] | |
Schedule of Maturities of Operating Lease Liabilities | The future lease payments as of July 29, 2023 were as follows: (in thousands) July 29, 2023 2024 $ 36,623 2025 32,898 2026 32,037 2027 26,342 2028 22,544 Thereafter 28,767 Total undiscounted future minimum lease payments 179,211 Less: imputed interest (24,450) Total discounted future minimum lease payments $ 154,761 |
Summary of Lease Components and Supplemental Cash Flows | For the Fiscal Year Ended (in thousands) July 29, 2023 July 30, 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 38,340 $ 34,261 Operating lease right-of-use assets obtained in exchange for operating lease liabilities, net of impairments and other reductions (1) (411) 40,067 (1) In fiscal 2023, we amended our lease agreement for our fulfillment center in Phoenix, AZ, to extend the lease term by five years. In fiscal 2023, we also recorded a $14.2 million impairment charge related to a portion of our corporate office space. Refer to Note 2, “Significant Accounting Policies” and Note 13, “Restructuring” for further details on the impairment charge. The components of our rent expense, which are recorded in selling, general, and administrative expense in the consolidated statement of operations and comprehensive loss, were as follows: For the Fiscal Year Ended (in thousands) July 29, 2023 July 30, 2022 Operating lease cost $ 34,592 $ 33,615 Variable lease costs 8,065 8,009 Short-term lease costs 41 354 Operating lease impairment (1) 14,168 5,428 Sublease income (2) (8,486) (4,230) Total $ 48,380 $ 43,176 (1) Refer to Note 13, “Restructuring” for more details. (2) During fiscal 2022 and fiscal 2023, we had subleases for certain portions of fulfillment centers and our corporate offices due to the reduction in square footage needs for current operations and our recent commitment to a more distributed workforce for corporate employees. We may continue to seek sublease arrangements in fiscal 2024 for certain corporate offices and fulfillment centers as needed. |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Jul. 29, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | The estimated useful lives of our assets are as follows: Estimated useful life Computer equipment and capitalized software 3 years Office furniture and equipment 5 years Leasehold improvements Shorter of lease term or estimated useful life Property and equipment, net consisted of the following: (in thousands) July 29, 2023 July 30, 2022 Computer equipment $ 9,005 $ 9,281 Office furniture and equipment 51,073 53,999 Leasehold improvements 51,382 54,247 Capitalized software 105,483 84,605 Construction in progress — 2,573 Building and land — 430 Total property and equipment 216,943 205,135 Less: accumulated depreciation and amortization (137,186) (101,760) Property and equipment, net $ 79,757 $ 103,375 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Jul. 29, 2023 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Liabilities | Accrued liabilities consisted of the following: (in thousands) July 29, 2023 July 30, 2022 Compensation and related benefits $ 13,627 $ 11,319 Advertising 6,956 15,579 Sales taxes 5,358 7,136 Shipping and freight 8,783 10,304 Accrued accounts payable 4,378 5,814 Inventory purchases 25,934 24,712 Sales refund reserve 6,591 10,314 Other 7,168 9,238 Total accrued liabilities $ 78,795 $ 94,416 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Jul. 29, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The tables below present the changes in AOCI by component and, if applicable, the reclassifications out of AOCI for fiscal 2023 and fiscal 2022 : Changes in Accumulated Other Comprehensive Income (Loss) (in thousands) Available-for-sale Securities Foreign Currency Translation Total Balance at July 30, 2022 $ (2,340) $ (1,187) $ (3,527) Other comprehensive income before reclassifications (1) 1,593 2,316 3,909 Amounts reclassified from AOCI 145 — 145 Net change in AOCI 1,738 2,316 4,054 Balance at July 29, 2023 $ (602) $ 1,129 $ 527 Changes in Accumulated Other Comprehensive Income (Loss) (in thousands) Available-for-sale Securities Foreign Currency Translation Total Balance at July 31, 2021 $ (290) $ 3,701 $ 3,411 Other comprehensive loss before reclassifications (1) (1,873) (4,888) (6,761) Amounts reclassified from AOCI (177) — (177) Net change in AOCI (2,050) (4,888) (6,938) Balance at July 30, 2022 $ (2,340) $ (1,187) $ (3,527) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jul. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Shares Available For Grant | The following table summarizes the shares available for grant under the 2017 Plan: Shares Available for Grant Balance at July 30, 2022 4,461,798 Authorized 5,464,539 Granted (11,569,298) Forfeited 8,855,115 Balance at July 29, 2023 7,212,154 |
Schedule of Stock Option Activity | Stock option activity under the 2011 Plan, 2017 Plan, and 2019 Plan was as follows: Options Outstanding Number of Weighted- Weighted- Average Remaining Contractual Life (in years) Aggregate Balance at July 30, 2022 4,703,564 $ 21.07 7.58 $ 638 Granted 6,428,078 4.22 Exercised (121,687) 1.32 Forfeited (2,903,845) 23.70 Balance at July 29, 2023 8,106,110 $ 7.06 8.78 $ 4,770 Options vested and exercisable at July 29, 2023 2,619,022 $ 12.75 6.90 $ 552 Options vested and expected to vest at July 29, 2023 7,488,969 $ 7.30 8.70 $ 4,271 |
Summary of Restricted Stock Unit Award Activity | The following table summarizes the RSU award activity under the 2017 Plan and 2019 Plan: Unvested RSUs Class A Common Stock Weighted- Unvested at July 30, 2022 19,217,622 $ 16.09 Granted 8,441,220 4.25 Vested (6,209,769) 12.43 Forfeited (9,993,496) 14.81 Unvested at July 29, 2023 11,455,577 $ 10.47 |
Summary of Black - Scholes Option - Pricing Model Assumptions Used in Estimating Fair Value of Stock Options | The fair value of stock options granted to employees was estimated at the grant date using the Black-Scholes option-pricing model with the following assumptions: For the Fiscal Year Ended July 29, 2023 July 30, 2022 July 31, 2021 Expected term (in years) 3.2 - 5.5 3.1 - 5.5 5.3 - 6.3 Volatility 80.3 - 87.3% 62.1 - 79.2% 55.5 - 55.9% Risk free interest rate 3.6 - 4.4% 0.8 - 2.9% 0.3 - 1.1% Dividend yield — % — % — % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income (Loss) Before Income Taxes | The domestic and foreign components of loss before income taxes were as follows: For the Fiscal Year Ended (in thousands) July 29, 2023 July 30, 2022 July 31, 2021 Income (loss) before income taxes: United States $ (172,334) $ (210,852) $ (62,341) Foreign 1,851 1,382 1,224 Total loss before income taxes $ (170,483) $ (209,470) $ (61,117) |
Schedule of Components of Provision for Income Tax Expense | The components of the provision (benefit) for income tax expense were as follows: For the Fiscal Year Ended (in thousands) July 29, 2023 July 30, 2022 July 31, 2021 Current: Federal $ 157 $ 88 $ (49,552) State (253) (2,472) (2,562) Foreign 1,273 570 (191) Total current 1,177 (1,814) (52,305) Deferred: Foreign 313 (535) 64 Total deferred 313 (535) 64 Total income tax provision (benefit) $ 1,490 $ (2,349) $ (52,241) |
Schedule of Reconciliation of Effective Tax Rate to the Statutory Federal Rate | The reconciliation of our effective tax rate to the statutory federal rate was as follows: For the Fiscal Year Ended (in thousands, except percentages) July 29, 2023 July 30, 2022 July 31, 2021 Taxes at federal statutory rate $ (35,801) 21.0 % $ (43,989) 21.0 % $ (12,835) 21.0 % State taxes, net of federal effect (351) 0.2 % (2,731) 1.3 % (2,417) 4.0 % Stock-based compensation 15,273 (9.0) % 8,909 (4.3) % (34,314) 56.1 % CARES Act carryback benefit — 0.0 % — 0.0 % (13,571) 22.2 % Change in valuation allowance 28,195 (16.5) % 41,262 (19.7) % 21,789 (35.7) % R&D credits (8,426) 4.9 % (7,921) 3.8 % (13,582) 22.2 % Uncertain tax positions 31 0.0 % 18 0.0 % (40) 0.1 % Return to provision 334 (0.2) % (208) 0.1 % 783 (1.3) % Other 2,235 (1.3) % 2,311 (1.1) % 1,946 (3.1) % Effective tax rate $ 1,490 (0.9) % $ (2,349) 1.1 % $ (52,241) 85.5 % |
Schedule of Components of Net Deferred Tax Assets | The components of net deferred tax assets were as follows: (in thousands) July 29, 2023 July 30, 2022 Deferred tax assets: Inventory reserve and UNICAP $ 16,514 $ 25,867 Accruals and reserves 2,829 5,180 Research and development credits 44,923 35,843 Capitalized research and development costs 31,416 — Stock-based compensation 10,679 16,487 Deferred revenue 1,095 390 Operating lease liability 40,423 43,280 Net operating losses 49,734 52,751 Other 1,996 2,001 Gross deferred tax assets 199,609 181,799 Less: valuation allowance (154,757) (126,463) Deferred tax assets, net of valuation allowance 44,852 55,336 Deferred tax liabilities: Depreciation and amortization (16,306) (20,221) Operating lease right-of-use assets (27,505) (33,254) Other (561) (1,110) Gross deferred tax liabilities (44,372) (54,585) Net deferred tax assets, net of valuation allowance $ 480 $ 751 |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of our unrecognized tax benefits is as follows: (in thousands) July 29, 2023 July 30, 2022 July 31, 2021 Balance at the beginning of the year $ 26,106 $ 23,625 $ 16,693 Lapse of statute of limitations (474) (2,191) (1,909) Increase related to prior period tax positions 1,134 309 495 Decrease related to prior period tax positions — (12) — Increase related to current year tax positions 3,150 4,375 8,346 Balance at the end of the year $ 29,916 $ 26,106 $ 23,625 |
Summary of Valuation Allowance | A reconciliation of our valuation allowance was as follows: (in thousands) July 29, 2023 July 30, 2022 Valuation allowance at the beginning of the year $ 126,463 $ 77,604 Valuation allowance charged to expense 35,836 54,383 Valuation allowance credited to other accounts (7,542) (5,524) Valuation allowance at the end of the year $ 154,757 $ 126,463 |
Loss Per Share Attributable t_2
Loss Per Share Attributable to Common Stockholders and Common Stock (Table) | 12 Months Ended |
Jul. 29, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of the Numerator and Denominator Used in the Calculation of Basic and Diluted EPS | The table below presents a reconciliation of the numerator and denominator used in the calculation of basic and diluted loss per share attributable to Class A and Class B common stockholders: (in thousands except share and per share amounts) July 29, 2023 July 30, 2022 July 31, 2021 Numerator: Net loss attributable to Class A and Class B common stockholders $ (171,973) $ (207,121) $ (8,876) Denominator: Weighted-average shares of common stock – basic 114,684,980 108,762,589 105,975,403 Weighted-average shares of common stock – diluted 114,684,980 108,762,589 105,975,403 Loss per share attributable to Class A and Class B common stockholders: Basic $ (1.50) $ (1.90) $ (0.08) Diluted $ (1.50) $ (1.90) $ (0.08) |
Schedule of Common Stock Equivalents Excluded From Computation of Diluted Earnings (Loss) Per Share | The following common stock equivalents were excluded from the computation of diluted loss per share because their effect would have been antidilutive for the periods presented: July 29, 2023 July 30, 2022 July 31, 2021 Restricted stock units that settle into Class A common stock 11,455,577 19,217,622 10,264,925 Stock options to purchase Class A common stock 7,297,653 3,629,617 2,361,055 Stock options to purchase Class B common stock 808,457 1,073,947 1,289,427 Total 19,561,687 23,921,186 13,915,407 |
Schedule of Share Repurchase Program | The table below summarizes the share repurchase activity in fiscal 2022 under our share repurchase program: July 30, 2022 Number of shares repurchased 2,302,141 Weighted-average price per share $ 13.03 Aggregate purchase price (in thousands) (1) $ 30,042 (1) Amount includes broker commissions |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Jul. 29, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Charges | The components of total restructuring charges were as follows: For the Fiscal Year Ended (in thousands) July 29, 2023 July 30, 2022 Cash restructuring charges: Severance and employee-related benefits (1) $ 18,299 $ 10,869 Other (4) 3,526 — Non-cash restructuring charges: Asset impairments (1, 2) 18,190 6,154 Accelerated depreciation (1) 2,805 — Inventory impairment (3) 553 719 Other (1) 1,364 — Total restructuring $ 44,737 $ 17,742 (1) Recognized in selling, general, and administrative expenses on the consolidated statements of operations and comprehensive loss. (2) Fiscal 2023 includes impairments of both operating lease right-of-use assets and property and equipment. (3) Recognized in cost of goods sold on the consolidated statements of operations and comprehensive loss. (4) Primarily comprised of losses expected to arise from firm purchase commitments for future receipts of inventory. The following table provides the changes in the Company’s restructuring related liabilities, which are included within accounts payable and accrued liabilities on the consolidated balance sheets: (in thousands) Severance and Employee Related Benefits and Other Balance at July 30, 2022 $ 290 Charges incurred 21,825 Cash payments (17,387) Balance at July 29, 2023 $ 4,728 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Jul. 29, 2023 USD ($) segment | Jul. 30, 2022 USD ($) | Jul. 31, 2021 USD ($) | |
Products And Services [Line Items] | |||
Number of operating segments | segment | 1 | ||
Number of reportable segments | segment | 1 | ||
Inventory reserve | $ 41,700 | $ 59,600 | |
Restructuring charges | 21,825 | ||
Refund reserve | 6,600 | 10,300 | |
Advertising expenses | $ 119,500 | $ 203,400 | $ 185,500 |
Dividend yield | 0% | 0% | 0% |
Options | |||
Products And Services [Line Items] | |||
Dividend yield | 0% | ||
June 9th, 2022 Restructuring Plan | |||
Products And Services [Line Items] | |||
Restructuring charges | $ 44,737 | $ 17,742 | |
Asset Impairments | June 9th, 2022 Restructuring Plan | |||
Products And Services [Line Items] | |||
Restructuring charges | 18,190 | 6,154 | |
Asset Impairments | June 9th, 2022 Restructuring Plan | Property, Plant and Equipment | United Kingdom | |||
Products And Services [Line Items] | |||
Restructuring charges | 1,300 | ||
Asset Impairments | June 9th, 2022 Restructuring Plan | Corporate Office Space | |||
Products And Services [Line Items] | |||
Restructuring charges | 16,900 | ||
Prepaid Expenses and Other Current Assets | |||
Products And Services [Line Items] | |||
Accrued interest receivable | $ 100 | $ 300 |
Significant Accounting Polici_5
Significant Accounting Policies - Estimated Useful Lives of Assets (Details) | Jul. 29, 2023 |
Computer equipment and capitalized software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets (in years) | 3 years |
Office furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets (in years) | 5 years |
Significant Accounting Polici_6
Significant Accounting Policies - Summary of Contractual Liabilities and Revenue Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 30, 2022 | Jul. 29, 2023 | |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 14,441 | $ 11,551 |
Total deferred revenue | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 14,441 | 11,551 |
Referral credits | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 684 | 401 |
Revenue recognized | 545 | |
Upfront styling fees | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 8,422 | 6,260 |
Revenue recognized | 8,350 | |
Style Pass annual fees | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 4,337 | 4,521 |
Revenue recognized | 4,337 | |
Freestyle orders | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 1,682 | 770 |
Revenue recognized | 1,160 | |
Gift card liability | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 10,551 | $ 10,355 |
Revenue recognized | $ 2,456 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Instruments Measured at Fair Value on Recurring Basis Based on Fair Value (Details) - USD ($) $ in Thousands | Jul. 29, 2023 | Jul. 30, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 18,161 | $ 99,762 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 7,226 | 42,260 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 2,985 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 10,935 | 54,517 |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 98,412 | 116,029 |
Fair Value, Recurring | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 7,226 | 42,260 |
Fair Value, Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 2,985 |
Fair Value, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 10,935 | 54,517 |
Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 87,477 | 58,527 |
Fair Value, Recurring | Level 1 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 7,226 | 42,260 |
Fair Value, Recurring | Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Fair Value, Recurring | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 10,935 | 57,502 |
Fair Value, Recurring | Level 2 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Fair Value, Recurring | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 2,985 |
Fair Value, Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 10,935 | 54,517 |
Fair Value, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Fair Value, Recurring | Level 3 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Fair Value, Recurring | Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Fair Value, Recurring | Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Fair Value, Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 80,251 | 16,267 |
Fair Value, Recurring | Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 80,251 | 16,267 |
Fair Value, Recurring | Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Recurring | Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Available-for-sale Securities (Details) - USD ($) $ in Thousands | Jul. 29, 2023 | Jul. 30, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 18,335 | $ 101,674 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (174) | (1,912) |
Fair Value | 18,161 | 99,762 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,266 | 43,163 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (40) | (903) |
Fair Value | 7,226 | 42,260 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 0 | 2,985 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 0 | 2,985 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 11,069 | 55,526 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (134) | (1,009) |
Fair Value | $ 10,935 | $ 54,517 |
Fair Value Measurements - Unrea
Fair Value Measurements - Unrealized Loss on Investments (Details) - USD ($) $ in Thousands | Jul. 29, 2023 | Jul. 30, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, fair value, less than 12 months | $ 265 | $ 67,200 |
Available-for-sale, unrealized losses, less than 12 months | (1) | (1,450) |
Available-for-sale, fair value, more than 12 months | 17,896 | 29,577 |
Available-for-sale, unrealized losses, more than 12 months | (173) | (462) |
Available-for-sale, fair value, total | 18,161 | 96,777 |
Available-for-sale, unrealized losses, total | (174) | (1,912) |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, fair value, less than 12 months | 265 | 42,260 |
Available-for-sale, unrealized losses, less than 12 months | (1) | (903) |
Available-for-sale, fair value, more than 12 months | 6,961 | 0 |
Available-for-sale, unrealized losses, more than 12 months | (39) | 0 |
Available-for-sale, fair value, total | 7,226 | 42,260 |
Available-for-sale, unrealized losses, total | (40) | (903) |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, fair value, less than 12 months | 0 | 24,940 |
Available-for-sale, unrealized losses, less than 12 months | 0 | (547) |
Available-for-sale, fair value, more than 12 months | 10,935 | 29,577 |
Available-for-sale, unrealized losses, more than 12 months | (134) | (462) |
Available-for-sale, fair value, total | 10,935 | 54,517 |
Available-for-sale, unrealized losses, total | $ (134) | $ (1,009) |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value of Available-for-Sale Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jul. 29, 2023 | Jul. 30, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
One Year or Less | $ 18,161 | |
One Year Through Five Years | 0 | |
Over Five Years | 0 | |
Fair Value | 18,161 | $ 99,762 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
One Year or Less | 7,226 | |
One Year Through Five Years | 0 | |
Over Five Years | 0 | |
Fair Value | 7,226 | 42,260 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
One Year or Less | 10,935 | |
One Year Through Five Years | 0 | |
Over Five Years | 0 | |
Fair Value | $ 10,935 | $ 54,517 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Jul. 29, 2023 USD ($) renewalOption | Jul. 30, 2022 USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of renewal options | renewalOption | 1 | |
Weighted average remaining lease term | 5 years 7 months 6 days | 6 years 3 months 18 days |
Weighted average discount rate, percent | 5.20% | 4.70% |
Operating lease, option to extend, term (in years) | 5 years | |
Operating lease impairment | $ 14,168 | $ 5,428 |
Asset Impairments | June 9th, 2022 Restructuring Plan | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease impairment | $ 14,200 | |
Minimum | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Term of lease contracts (in years) | 5 years | |
Maximum | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Term of lease contracts (in years) | 11 years |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Details) $ in Thousands | Jul. 29, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 36,623 |
2025 | 32,898 |
2026 | 32,037 |
2027 | 26,342 |
2028 | 22,544 |
Thereafter | 28,767 |
Total undiscounted future minimum lease payments | 179,211 |
Less: imputed interest | (24,450) |
Total discounted future minimum lease payments | $ 154,761 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flows Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 29, 2023 | Jul. 30, 2022 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 38,340 | $ 34,261 |
Operating lease right-of-use assets obtained in exchange for operating lease liabilities, net of impairments and other reductions | $ (411) | $ 40,067 |
Leases - Summary of Lease Compo
Leases - Summary of Lease Components (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 29, 2023 | Jul. 30, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 34,592 | $ 33,615 |
Variable lease costs | 8,065 | 8,009 |
Short-term lease costs | 41 | 354 |
Operating lease impairment | 14,168 | 5,428 |
Sublease income | (8,486) | (4,230) |
Total | $ 48,380 | $ 43,176 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jul. 29, 2023 | Jul. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 216,943 | $ 205,135 |
Less: accumulated depreciation and amortization | (137,186) | (101,760) |
Property and equipment, net | 79,757 | 103,375 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 9,005 | 9,281 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 51,073 | 53,999 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 51,382 | 54,247 |
Capitalized software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 105,483 | 84,605 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 0 | 2,573 |
Building and land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 0 | $ 430 |
Property and Equipment, net - A
Property and Equipment, net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 42.3 | $ 35 | $ 27.6 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Jul. 29, 2023 | Jul. 30, 2022 |
Payables and Accruals [Abstract] | ||
Compensation and related benefits | $ 13,627 | $ 11,319 |
Advertising | 6,956 | 15,579 |
Sales taxes | 5,358 | 7,136 |
Shipping and freight | 8,783 | 10,304 |
Accrued accounts payable | 4,378 | 5,814 |
Inventory purchases | 25,934 | 24,712 |
Sales refund reserve | 6,591 | 10,314 |
Other | 7,168 | 9,238 |
Total accrued liabilities | $ 78,795 | $ 94,416 |
Credit Agreement (Details)
Credit Agreement (Details) - Senior Revolving Credit Facility - Credit Agreement - USD ($) | Jun. 02, 2021 | Jul. 29, 2023 |
Subsequent Event [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | |
Credit sublimit | 30,000,000 | |
Swingline provision | 40,000,000 | |
Option increase amount | $ 150,000,000 | |
Commitment fee percentage | 0.25% | |
Letter of Credit | ||
Subsequent Event [Line Items] | ||
Outstanding borrowings | $ 78,100,000 | |
Secured Overnight Financing Rate (SOFR) | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate (percentage) | 2.25% | |
Federal Funds Rate | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate (percentage) | 0.50% | |
Eurodollar | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate (percentage) | 1% | |
Eurodollar Applicable Margin Rate | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate (percentage) | 1.25% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 2 Months Ended | |
Dec. 10, 2018 lawsuit | Jul. 29, 2023 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Number of lawsuits | lawsuit | 4 | |
Purchase commitments | $ | $ 168 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) | 12 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Stockholders' equity, beginning balance | $ 322,651,000 | $ 460,849,000 | $ 401,037,000 |
Net change in AOCI | 4,054,000 | (6,938,000) | 683,000 |
Stockholders' equity, ending balance | 247,310,000 | 322,651,000 | 460,849,000 |
Gains (losses) on available-for-sale securities | 0 | 0 | |
Total | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Stockholders' equity, beginning balance | (3,527,000) | 3,411,000 | 2,728,000 |
Other comprehensive income (loss) before reclassifications | 3,909,000 | (6,761,000) | |
Amounts reclassified from AOCI | 145,000 | (177,000) | |
Net change in AOCI | 4,054,000 | (6,938,000) | 683,000 |
Stockholders' equity, ending balance | 527,000 | (3,527,000) | 3,411,000 |
Available-for-sale Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Stockholders' equity, beginning balance | (2,340,000) | (290,000) | |
Other comprehensive income (loss) before reclassifications | 1,593,000 | (1,873,000) | |
Amounts reclassified from AOCI | 145,000 | (177,000) | |
Net change in AOCI | 1,738,000 | (2,050,000) | |
Stockholders' equity, ending balance | (602,000) | (2,340,000) | (290,000) |
Foreign Currency Translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Stockholders' equity, beginning balance | (1,187,000) | 3,701,000 | |
Other comprehensive income (loss) before reclassifications | 2,316,000 | (4,888,000) | |
Amounts reclassified from AOCI | 0 | 0 | |
Net change in AOCI | 2,316,000 | (4,888,000) | |
Stockholders' equity, ending balance | $ 1,129,000 | $ (1,187,000) | $ 3,701,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value of options granted (in dollars per share) | $ 2.72 | $ 6.26 | $ 29.07 |
Grant date fair value of options vested | $ 11.8 | $ 14 | $ 13.3 |
Aggregate intrinsic value | 0.4 | 3.5 | 78.3 |
Stock based compensation | (4.4) | ||
Unrecognized compensation expense related to unvested options and RSUs, net of forfeitures | $ 113.3 | ||
Unrecognized compensation expense, period for recognition (in years) | 2 years 3 months 18 days | ||
Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation | $ 104.5 | $ 128.5 | $ 100.7 |
Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term of award | 10 years | ||
2011 Plan | Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 25% | ||
Award vesting period | 3 years | ||
2017 Plan | Common Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 38,257,771 | ||
2017 Plan | Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term of award | 10 years | ||
Number of shares authorized (in shares) | 5,464,539 | ||
Number of shares available for grant (in shares) | 7,212,154 | 4,461,798 | |
2017 Plan | Options | First Anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 6 months | ||
2017 Plan | Options | Second Anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 30 months | ||
2019 Inducement Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant (in shares) | 1,201,427 | ||
2019 Inducement Plan | Common Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 10,750,000 |
Stock-Based Compensation - Shar
Stock-Based Compensation - Shares Available For Grant And Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jul. 29, 2023 | Jul. 30, 2022 | |
Number of Options | ||
Options vested and exercisable (in shares) | 2,619,022 | |
Options vested and expected to vest (in shares) | 7,488,969 | |
Weighted- Average Exercise Price | ||
Options vested and exercisable (in dollars per share) | $ 12.75 | |
Options vested and expected to vest (in dollars per share) | $ 7.30 | |
Weighted- Average Remaining Contractual Life (in years) | ||
Options vested and exercisable, weighted-average remaining contractual life | 6 years 10 months 24 days | |
Options vested and expected to vest, weighted-average remaining contractual life | 8 years 8 months 12 days | |
Aggregate Intrinsic Value (in thousands) | ||
Options vested and exercisable, aggregate intrinsic value | $ 552 | |
Options vested and expected to vest, aggregate intrinsic value | $ 4,271 | |
2017 Plan | Options | ||
Shares Available for Grant | ||
Outstanding, beginning balance (in shares) | 4,461,798 | |
Authorized (in shares) | 5,464,539 | |
Granted (in shares) | (11,569,298) | |
Forfeited (in shares) | 8,855,115 | |
Outstanding, ending balance (in shares) | 7,212,154 | 4,461,798 |
Two Thousand Eleven. Two Thousand Seventeen, and Two Thousand Nineteen Incentive Plans | ||
Number of Options | ||
Outstanding, beginning balance (in shares) | 4,703,564 | |
Granted (in shares) | 6,428,078 | |
Exercised (in shares) | (121,687) | |
Forfeited (in shares) | (2,903,845) | |
Outstanding, ending balance (in shares) | 8,106,110 | 4,703,564 |
Weighted- Average Exercise Price | ||
Outstanding, beginning balance (in dollars per share) | $ 21.07 | |
Granted (in dollars per share) | 4.22 | |
Exercised (in dollars per share) | 1.32 | |
Cancelled (in dollars per share) | 23.70 | |
Outstanding, ending balance (in dollars per share) | $ 7.06 | $ 21.07 |
Weighted- Average Remaining Contractual Life (in years) | ||
Outstanding, weighted-average remaining contractual life | 8 years 9 months 10 days | 7 years 6 months 29 days |
Aggregate Intrinsic Value (in thousands) | ||
Outstanding, aggregate intrinsic value | $ 4,770 | $ 638 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) - Restricted stock units that settle into Class A common stock - Class A Common Stock | 12 Months Ended |
Jul. 29, 2023 $ / shares shares | |
Class A Common Stock | |
Unvested, beginning balance (in shares) | shares | 19,217,622 |
Granted (in shares) | shares | 8,441,220 |
Vested (in shares) | shares | (6,209,769) |
Forfeited (in shares) | shares | (9,993,496) |
Unvested, ending balance (in shares) | shares | 11,455,577 |
Weighted- Average Grant Date Fair Value | |
Unvested, beginning balance (in dollars per share) | $ / shares | $ 16.09 |
Granted (in dollars per share) | $ / shares | 4.25 |
Vested (in dollars per share) | $ / shares | 12.43 |
Forfeited (in dollars per share) | $ / shares | 14.81 |
Unvested, ending balance (in dollars per share) | $ / shares | $ 10.47 |
Stock-Based Compensation - Blac
Stock-Based Compensation - Black-Scholes Option Pricing Model Assumptions (Details) | 12 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility, minimum | 80.30% | 62.10% | 55.50% |
Volatility, maximum | 87.30% | 79.20% | 55.90% |
Risk free interest rate, minimum | 3.60% | 0.80% | 0.30% |
Risk free interest rate, maximum | 4.40% | 2.90% | 1.10% |
Dividend yield | 0% | 0% | 0% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 3 years 2 months 12 days | 3 years 1 month 6 days | 5 years 3 months 18 days |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 5 years 6 months | 5 years 6 months | 6 years 3 months 18 days |
Income Taxes - Components of Ne
Income Taxes - Components of Net Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (172,334) | $ (210,852) | $ (62,341) |
Foreign | 1,851 | 1,382 | 1,224 |
Total loss before income taxes | $ (170,483) | $ (209,470) | $ (61,117) |
Income Taxes - Components of th
Income Taxes - Components of the Provision for Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 31, 2021 | |
Current: | |||
Federal | $ 157 | $ 88 | $ (49,552) |
State | (253) | (2,472) | (2,562) |
Foreign | 1,273 | 570 | (191) |
Total current | 1,177 | (1,814) | (52,305) |
Deferred: | |||
Foreign | 313 | (535) | 64 |
Total deferred | 313 | (535) | 64 |
Total income tax provision (benefit) | $ 1,490 | $ (2,349) | $ (52,241) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rate to the Statutory Federal Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Taxes at federal statutory rate, amount | $ (35,801) | $ (43,989) | $ (12,835) |
Taxes at federal statutory rate, percent | 21% | 21% | 21% |
State taxes, net of federal effect, amount | $ (351) | $ (2,731) | $ (2,417) |
State taxes, net of federal effect, percent | 0.20% | 1.30% | 4% |
Stock-based compensation, amount | $ 15,273 | $ 8,909 | $ (34,314) |
Stock-based compensation, percent | (9.00%) | (4.30%) | 56.10% |
CARES Act carryback benefit, amount | $ 0 | $ 0 | $ (13,571) |
CARES Act carryback benefit, percent | 0% | 0% | 22.20% |
Change in valuation allowance, amount | $ 28,195 | $ 41,262 | $ 21,789 |
Change in valuation allowance, percent | (16.50%) | (19.70%) | (35.70%) |
R&D credits, amount | $ (8,426) | $ (7,921) | $ (13,582) |
R&D credits, percent | 4.90% | 3.80% | 22.20% |
Uncertain tax positions, amount | $ 31 | $ 18 | $ (40) |
Uncertain tax positions, percent | 0% | 0% | 0.10% |
Return to provision, amount | $ 334 | $ (208) | $ 783 |
Return to provision, percent | (0.20%) | 0.10% | (1.30%) |
Other, amount | $ 2,235 | $ 2,311 | $ 1,946 |
Other, percent | (1.30%) | (1.10%) | (3.10%) |
Total income tax provision (benefit) | $ 1,490 | $ (2,349) | $ (52,241) |
Effective tax rate, percent | (0.90%) | 1.10% | 85.50% |
Income Taxes - Components of _2
Income Taxes - Components of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Jul. 29, 2023 | Jul. 30, 2022 | Jul. 31, 2021 |
Deferred tax assets: | |||
Inventory reserve and UNICAP | $ 16,514 | $ 25,867 | |
Accruals and reserves | 2,829 | 5,180 | |
Research and development credits | 44,923 | 35,843 | |
Capitalized research and development costs | 31,416 | 0 | |
Capitalized research and development costs | (31,400) | ||
Stock-based compensation | 10,679 | 16,487 | |
Deferred revenue | 1,095 | 390 | |
Operating lease liability | 40,423 | 43,280 | |
Net operating losses | 49,734 | 52,751 | |
Other | 1,996 | 2,001 | |
Gross deferred tax assets | 199,609 | 181,799 | |
Less: valuation allowance | (154,757) | (126,463) | $ (77,604) |
Deferred tax assets, net of valuation allowance | 44,852 | 55,336 | |
Deferred tax liabilities: | |||
Depreciation and amortization | (16,306) | (20,221) | |
Operating lease right-of-use assets | (27,505) | (33,254) | |
Other | (561) | (1,110) | |
Gross deferred tax liabilities | (44,372) | (54,585) | |
Net deferred tax assets, net of valuation allowance | $ 480 | $ 751 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jul. 29, 2023 | Jul. 30, 2022 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Capitalized expenses, amortization period | 5 years | |
Capitalized research and development costs | $ 31.4 | |
Increase of liability for uncertain tax positions that impact current and future tax expense | 1.4 | |
Valuation allowance, increase (decrease) | 28.3 | $ 48.9 |
Lapses Of Applicable Statutes Of Limitations | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Expected decrease of unrecognized tax benefits | 1.2 | |
California | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Research and development tax credit carryforwards | 23.9 | 21.4 |
Domestic Tax Authority | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Operating loss carryforwards | 152.7 | 165.3 |
Research and development tax credit carryforwards | 49.5 | 38.7 |
State | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Operating loss carryforwards | $ 274.7 | $ 256 |
Income Taxes - Uncertain Tax Po
Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at the beginning of the year | $ 26,106 | $ 23,625 | $ 16,693 |
Lapse of statute of limitations | (474) | (2,191) | (1,909) |
Increase related to prior period tax positions | 1,134 | 309 | 495 |
Decrease related to prior period tax positions | 0 | (12) | 0 |
Increase related to current year tax positions | 3,150 | 4,375 | 8,346 |
Balance at the end of the year | $ 29,916 | $ 26,106 | $ 23,625 |
Income Taxes - Summary of Valua
Income Taxes - Summary of Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 29, 2023 | Jul. 30, 2022 | |
Income Taxes Valuation Allowance [Roll Forward] | ||
Valuation allowance at the beginning of the year | $ 126,463 | $ 77,604 |
Valuation allowance charged to expense | 35,836 | 54,383 |
Valuation allowance credited to other accounts | (7,542) | (5,524) |
Valuation allowance at the end of the year | $ 154,757 | $ 126,463 |
Loss Per Share Attributable t_3
Loss Per Share Attributable to Common Stockholders and Common Stock - Additional Information (Details) | 12 Months Ended | |||
Jul. 29, 2023 USD ($) vote class $ / shares shares | Jul. 30, 2022 USD ($) $ / shares shares | Jul. 31, 2021 USD ($) $ / shares shares | Jan. 31, 2022 USD ($) | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Number of new classes of common stock authorized | class | 2 | |||
Common stock, conversion ratio | 1 | |||
Aggregate purchase price | $ 120,000,000 | |||
Numerator: | ||||
Net loss attributable to Class A and Class B common stockholders | $ (171,973,000) | $ (207,121,000) | $ (8,876,000) | |
Denominator: | ||||
Weighted-average shares of common stock - basic (in shares) | shares | 114,684,980 | 108,762,589 | 105,975,403 | |
Weighted-average shares of common stock - diluted (in shares) | shares | 114,684,980 | 108,762,589 | 105,975,403 | |
Loss per share attributable to Class A and Class B common stockholders: | ||||
Basic (in dollars per share) | $ / shares | $ (1.50) | $ (1.90) | $ (0.08) | |
Diluted (in dollars per share) | $ / shares | $ (1.50) | $ (1.90) | $ (0.08) | |
Class A Common Stock | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Share repurchase amount | $ 150,000,000 | |||
IPO | Class A Common Stock | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Common stock voting rights per share | vote | 1 | |||
IPO | Common Class B | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Common stock voting rights per share | vote | 10 |
Loss Per Share Attributable t_4
Loss Per Share Attributable to Common Stockholders and Common Stock - Common Stock Equivalents Excluded From Computation of Diluted Loss Per Share (Details) - shares | 12 Months Ended | ||
Jul. 29, 2023 | Jul. 30, 2022 | Jul. 31, 2021 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Common stock equivalents excluded from the computation of diluted loss per share (in shares) | 19,561,687 | 23,921,186 | 13,915,407 |
Restricted stock units that settle into Class A common stock | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Common stock equivalents excluded from the computation of diluted loss per share (in shares) | 11,455,577 | 19,217,622 | 10,264,925 |
Options | Class A Common Stock | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Common stock equivalents excluded from the computation of diluted loss per share (in shares) | 7,297,653 | 3,629,617 | 2,361,055 |
Options | Class B Common Stock | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Common stock equivalents excluded from the computation of diluted loss per share (in shares) | 808,457 | 1,073,947 | 1,289,427 |
Loss Per Share Attributable t_5
Loss Per Share Attributable to Common Stockholders and Common Stock - Schedule of Share Repurchase Program (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Jul. 30, 2022 USD ($) $ / shares shares | |
Earnings Per Share [Abstract] | |
Number of shares repurchased (in shares) | shares | 2,302,141 |
Weighted-average price per share (in USD per share) | $ / shares | $ 13.03 |
Aggregate purchase price | $ | $ 30,042 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 05, 2023 | Oct. 29, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 21,825 | |||
Payments for restructuring | 17,387 | |||
Purchase commitments | 168,000 | |||
June 9th, 2022 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of positions eliminated, period percent | 6% | 4% | ||
Restructuring charges | 44,737 | $ 17,742 | ||
June 9th, 2022 Restructuring Plan | UNITED STATES | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 17,900 | |||
Payments for restructuring | 16,800 | |||
June 9th, 2022 Restructuring Plan | Minimum | Bethlehem, Pennsylvania and Dallas, Texas | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additional cash restructuring charges | 5,000 | |||
June 9th, 2022 Restructuring Plan | Minimum | United Kingdom | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additional cash restructuring charges | 4,000 | |||
June 9th, 2022 Restructuring Plan | Maximum | Bethlehem, Pennsylvania and Dallas, Texas | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additional cash restructuring charges | 7,000 | |||
June 9th, 2022 Restructuring Plan | Maximum | United Kingdom | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additional cash restructuring charges | 5,000 | |||
June 9th, 2022 Restructuring Plan | Severance and Employee-related Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 900 | 18,299 | 10,869 | |
June 9th, 2022 Restructuring Plan | Severance and Employee-related Benefits | Bethlehem, Pennsylvania and Dallas, Texas | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,300 | |||
June 9th, 2022 Restructuring Plan | Asset Impairments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 18,190 | 6,154 | ||
June 9th, 2022 Restructuring Plan | Asset Impairments | Corporate Office Space | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 16,900 | |||
June 9th, 2022 Restructuring Plan | Asset Impairments | United Kingdom | Property, Plant and Equipment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,300 | |||
June 9th, 2022 Restructuring Plan | Accelerated Depreciation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 2,805 | 0 | ||
June 9th, 2022 Restructuring Plan | Accelerated Depreciation | UTAH | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,800 | |||
June 9th, 2022 Restructuring Plan | Accelerated Depreciation and Other Restructuring Charges | Bethlehem, Pennsylvania and Dallas, Texas | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,300 | |||
June 9th, 2022 Restructuring Plan | Inventory Impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 553 | 719 | ||
June 9th, 2022 Restructuring Plan | Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,364 | $ 0 | ||
June 9th, 2022 Restructuring Plan | Other | United Kingdom | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Purchase commitments | 2,800 | |||
June 9th, 2022 Restructuring Plan | Inventory Valuation and Obsolescence | United Kingdom | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 600 | |||
June 9th, 2022 Restructuring Plan | Salaried Employees | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of positions eliminated, period percent | 20% | 15% |
Restructuring - Components of R
Restructuring - Components of Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Oct. 29, 2022 | Jul. 29, 2023 | Jul. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 21,825 | ||
June 9th, 2022 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 44,737 | $ 17,742 | |
Severance and Employee-related Benefits | June 9th, 2022 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 900 | 18,299 | 10,869 |
Other | June 9th, 2022 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 3,526 | 0 | |
Asset Impairments | June 9th, 2022 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 18,190 | 6,154 | |
Accelerated Depreciation | June 9th, 2022 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 2,805 | 0 | |
Inventory Impairment | June 9th, 2022 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 553 | 719 | |
Other | June 9th, 2022 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 1,364 | $ 0 |
Restructuring - Restructuring C
Restructuring - Restructuring Charges Rollforward (Details) $ in Thousands | 12 Months Ended |
Jul. 29, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning balance | $ 290 |
Restructuring charges | 21,825 |
Cash payments | (17,387) |
Restructuring reserve, ending balance | $ 4,728 |