Stitch Fix shares fall despite earnings beat, with ‘softer’ fiscal first quarter ahead

Earnings

Stitch Fix‘s active client base grew 18% year over year, reaching 3.2 million people, the online styling service said when it reported earnings after the bell on Tuesday.

That’s about in-line with the 3.23 million analysts were expecting, according to FactSet. This number tracks the total number of users who’ve received a box of clothing from Stitch Fix in the preceding 12 months.

Its shares initially tanked as much as 12% in after-hours trading following the release. The stock was recently up less than 1%, having closed the day up 4.2%.

Here’s how Stitch Fix did during its fiscal fourth quarter compared with what analysts were expecting, based on data pulled from Refinitiv:

  • Earnings per share: 7 cents vs. 4 cents expected
  • Revenue: $432.1 million vs. $432 million expected

Stitch Fix reported a profit for the quarter ended Aug. 3 of $7.2 million, or 7 cents per share, compared with $18.3 million, or 18 cents a share, a year ago. That was 3 cents better than analysts polled by Refinitiv were expecting.

Revenue climbed 36% to $432.1 million from $318.3 million a year ago. That was about in-line with expectations for $432 million.

“These gains are a testament to the strength of our data science capabilities,” CEO Katrina Lake said in a statement.

The company said it managed to grow revenue per active client in every quarter of fiscal 2019, which included 9% growth, year over year, during the fourth quarter.

As of Tuesday’s market close, Stitch Fix shares had climbed about 18% this year.

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