Stitch Fix shares jumped more than 17% in extended trading on Tuesday after the online shopping and styling service posted surprising gains for its fiscal fourth quarter.
Sales for the three-month period ended July 31 also exceeded analysts’ expectations, thanks to disproportionate growth in its women and children categories.
Consumers have been splurging on new outfits in recent months as many return to school and return to social gatherings. Some also spoke of the need for new clothes after gaining or losing weight during the pandemic.
Here’s how Stitch Fix compares to Wall Street expectations, based on an analyst poll by Refinitiv:
- Earnings per share: 19 cents vs. 13 cents expected loss
- Revenue: $ 571.2 million vs. $ 548 million expected
Net income attributable to shareholders during the most recent period was $ 28 million, or 19 cents per share. A year earlier, it reported a net loss of $ 44.5 million, or 44 cents per share. Analysts were expecting the company to post a loss of 13 cents per share.
Revenue increased to $ 571.2 million from $ 443.4 million a year ago. It was better than analysts’ expectations for $ 548 million.
Stitch Fix reported around 4.2 million active subscribers, up 18% from a year ago. The company said net income per active customer was $ 505, breaking the $ 500 threshold for the first time.
Stitch Fix defines active customers as those who have either ordered a “Fix” subscription or purchased an item directly from its website within the past 52 weeks from the last day of the quarter.
Last month, Stitch Fix finally opened up its direct buy option, now known as “Freestyle”, to the public. This allows people to purchase Stitch Fix for individual garments, without needing to register to become a member.
CEO Elizabeth Spaulding said it will help Stitch Fix grow its addressable market over the coming year.
For its first fiscal quarter, Stitch Fix reported revenue of $ 560 to $ 575 million. This is below analysts’ expectations for $ 588 million.
For the next fiscal year, Stitch Fix forecasts sales growth of 15% or more over the previous year. Analysts polled by Refinitiv were looking for 18% growth.
As of Tuesday’s market close, Stitch Fix shares were down about 39% this year. The company’s market capitalization is $ 3.8 billion.
Find the full Stitch Fix press release here.