• February 4, 2023

Stitch Fix stock down 23% after quarterly sales disappoint

Stitch Fix Inc. stock rose more than 20% in Monday’s expanded session after the retailer reported second-quarter sales that fell short of Wall Street’s expectations.

Stitch fix
SFIX, -6.14%
The company lost $ 21 million, or 20 cents per share, for the quarter, compared with earnings of $ 11.4 million, or 11 cents per share, for the year-ago period.

Revenue increased 12% to $ 504.1 million.

Analysts surveyed by FactSet had expected the company to post a GAAP loss of 22 cents per revenue share of $ 512 million.

Stitch Fix, which gathers customer information like size, price, and styles and then uses that to handpick clothes and accessories through its stylists and ship the items, said its active users reached 3.87 million, slightly above that FactSet consensus for active users up 3.85 million.

“We added more active customers in the first two quarters than we did in the entire past fiscal year, and we delivered one of our strongest Januarys in history,” said founder and CEO Katrina Lake.

“This demand for our model of personalized discovery and radical convenience enables us to continue to participate in the ongoing change in the retail landscape and gives us confidence in our long-term opportunities,” she said.

Stitch Fix’s stocks have tripled in the past 12 months, compared to a gain of around 30% for the S&P 500 index
SPX, -0.54%.

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