Stitch Fix Inc (NASDAQ: SFIX) jumped roughly 17% in the stock market in extended trading on Monday as the online personal styling service reported market-beating quarterly results.
Stitch Fix Q3 financial results
Stitch Fix reported $18.8 million (£13.26 million) of net loss in the fiscal third quarter that translates to 18 cents per share. In the comparable quarter of last year, it had posted $33.9 million of net loss, or 33 cents per share.
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The U.S. firm generated $535.6 million of revenue in Q3 that represents a year over year growth of 44%. According to FactSet, experts had forecast $511 million of revenue and 27 cents of EPS for the recent quarter. In the prior quarter (Q2), Stitch Fix had recorded lower than expected sales.
Guidance for the full year
For the full fiscal year, Stitch Fix now forecasts up to $2.08 billion of revenue and $25 million to $30 million of adjusted EBITDA. Analysts, on the other hand, are calling for a lower $2.04 billion of sales this year. According to Elizabeth Spaulding (president of the company):
“We’re pleased with our performance this quarter and are excited to meet the needs and enthusiasm of more and more clients as the world continues to reopen and the apparel retail backdrop improves. As we look ahead, we are inspired to be building an ecosystem of personalised shopping experiences, designed with universal appeal, to meet every need and occasion.â€
What else is noteworthy?
Stitch Fix now has 4.1 million active clients – 20% more compared to the third quarter of the previous year. At $481, revenue per active client noted a 3% annualised decline.
In the fourth quarter, Stitch Fix is scheduled to launch its direct-buy service, currently available to subscribers only. The offering, founder and CEO Katrina Lake, is confident will help reach new users and drive more sales. Lake is set to step down as the chief executive on 1st August and will be succeeded by Elizabeth Spaulding.
A brief overview of the stock
Stitch Fix shares are now exchanging hands at $67 per share. Despite a sharp increase in after-hours trading, the stock is still significantly down compared to its year-to-date high of $106.41 per share in the last week of January.
Stitch Fix ended 2020 with a close to 125% gain. At the time of writing, the San Francisco-based company has a market cap of $6.16 billion.
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