Stitch Fix shares surge as online styling service reports surprise profit

Earnings

In this article

The Stitch Fix application for download in the Apple App Store on a smartphone arranged in Hastings-on-Hudson, New York, U.S., on Saturday, June 5, 2021. Stitch Fix Inc. is scheduled to release earning on June 7.
Tiffany Hagler-Geard | Bloomberg | Getty Images

Stitch Fix shares jumped more than 18% in extended trading Tuesday after the online shopping and styling service reported a surprise profit for its fiscal fourth quarter.

Sales for the three-month period ended July 31 also came in higher than analysts were expecting, thanks to outsized growth in its women’s and kids’ categories.

Here’s how Stitch Fix did compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: 19 cents vs. a loss of 13 cents expected
  • Revenue: $571.2 million vs. $548 million expected

Net income attributable to shareholders was $28 million, or 19 cents per share, in the latest period. A year ago, it posted a net loss of $44.5 million, or 44 cents a share. Analysts had been looking for the company to book a loss of 13 cents per share.

Revenue grew to $571.2 million from $443.4 million a year earlier. That was better than analysts’ expectations for $548 million.

Stitch Fix reported nearly 4.2 million active clients, up 18% from a year earlier.

As of Tuesday’s market close, Stitch Fix shares have fallen nearly 39% this year. The company has a market cap of $3.8 billion.

This story is developing. Please check back for updates.

Find the full press release from Stitch Fix here.

Articles You May Like

Palo Alto Networks beat and raise fails to wow Wall Street. But that plays into our hand
AMC is poised to ride the box-office rebound, as long as its debt doesn’t get in the way
Women prefer to play mobile games. China’s Tencent sees an opportunity
Germany’s Thyssenkrupp pops 8% after narrowing net loss and booking $1 billion impairment charge
More young men are struggling financially. Here’s how that helped Trump win

Leave a Reply

Your email address will not be published. Required fields are marked *