Stitch Fix, an online personal styling and personalisation service for apparel, has announced a slump of 9 per cent in sales for the third quarter of FY20, ended 2 May.

Backlogged orders and supply chain disruption due to the pandemic is what the company blames for the wider-than-expected net loss.

Despite incurring a net loss of US $ 33.9 million, according to Chief Executive Katrina Lake, the company will likely return to growth in the fourth quarter as more and more warehouses are now functional and they expect to clear all order backlogs by the end of June.

The revenue for the company also fell to US $ 371.7 million from US $ 408.9 million.

The news of the sales decline may be bad for the company but it is nowhere close to the 80 per cent decline in sales the apparel and fashion industry has seen on the whole.

Stitch Fix is a subscription service which sends people boxes of clothes they can either pay to keep or return as per their choice. The personalisation service ensures perfect sizing and choices for their customers.

Stitch Fix, which has a market capitalisation of US $ 2.6 billion, had earlier announced laying off almost 18 per cent or 1,400 stylists of its workforce by September.

With an active client base of 3.4 million, the company has increased its active members by 6 per cent year-on-year.