Stitch Fix, Inc.SFIX

Stitch Fix, Inc. Leases Disclosure

10-KFiled Sep 25, 20253 min read
4.LEASES
Our leasing portfolio includes lease arrangements for our corporate offices and fulfillment centers. Such leases generally have original lease terms between five years and eleven years, and often include one or more options to renew. We have not considered any of our renewal options reasonably certain to be exercised at lease commencement and do not have residual value guarantees associated with our leases.
As of August 2, 2025, the Company subleases certain office and warehouse space to third parties. These subleases have total original lease terms ranging from approximately two years to eight years that will expire at various dates by fiscal year 2032, one of which includes an option to extend the sublease for an additional two years.
The future lease payments as of August 2, 2025, were as follows:
(in thousands)August 2, 2025
2026$27,102 
202726,342 
202822,544 
20299,170 
20309,409 
Thereafter10,188 
Total undiscounted future minimum lease payments(1)
104,755 
Less: imputed interest11,244 
Total discounted future minimum lease payments$93,511 
(1) Total future minimum lease payments have not been reduced by minimum sublease income of approximately $27.3 million.
The weighted average remaining term for our leases as of August 2, 2025, and August 3, 2024, was 4.4 years and 5.1 years, respectively. The weighted average discount rate for our leases as of August 2, 2025, and August 3, 2024, was 5.2%.
SUPPLEMENTAL CASH FLOW INFORMATION
For the Fiscal Year Ended
(in thousands)August 2, 2025August 3, 2024
Cash paid for amounts included in the measurement of operating lease liabilities$29,966 $35,461 
Operating lease right-of-use assets obtained in exchange for operating lease liabilities, net of impairments and other reductions (1)
— (21,055)
(1) In fiscal 2024, we recorded an impairment charge related to a portion of our corporate office space of $16.6 million. Refer to Note 14, “Restructuring” for further details on the impairment charge. In addition, in fiscal 2024, we entered into an early termination of our lease at our Dallas warehouse, resulting in removal of the right-of-use asset which was included in the $1.5 million loss on lease termination, recorded within selling, general, and administrative expenses on the consolidated statements of operations and comprehensive loss.
OPERATING LEASE COST
Operating lease cost is recorded on a straight-line basis over the lease term. For impaired operating leases, the right-of-use asset is depreciated on a straight-line basis over the remaining 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)August 2, 2025August 3, 2024
Operating lease cost$18,206 $26,949 
Variable lease costs7,253 8,807 
Short-term lease costs3 13 
Operating lease impairment (1)
— 16,562 
Loss on early termination— 1,465 
Sublease income (2)
(9,044)(8,216)
Total$16,418 $45,580 
(1) Refer to Note 14, “Restructuring” for more details.
(2) During fiscal 2025 and fiscal 2024, we had subleases for certain portions of fulfillment centers and our corporate offices due to the reduction in square footage needs for current operations. We continue to seek sublease arrangements for corporate office space.

Historical Timeline

Fiscal YearFiled
2025Sep 25, 2025Showing above
2024Sep 25, 2024

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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