Stitch Fix Inc. | $SFIX Stock | Shares Soar After Q3 Results Top Estimates

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Stitch Fix Inc. (NASDAQ: SFIX)

 

Shares of Stitch Fix, Inc. are soaring after the California-based company reported its earnings results for the third-quarter of fiscal year 2018 which came to a close on April 28.

The company easily beat the figures that analysts had put forward after announcing the results late Thursday.

Chief Executive Officer Katrina Lake also said the company would launch a personalized platform for children’s apparel known as Stitch Fix Kids to make it easier for parents to shop their children.

Further, the company also announced the appointment of a new chief marketing officer known as Deirdre Findlay. SFIX stock started Friday’s regular trading session at $21.39 after gaining $1.72, or 8.72%.

SFIX Earnings & Outlook

Stitch Fix had a net income of $9.5 million, or $0.09 per share during the quarter, compared to a net loss of $9.6 million, or $0.38 per share in same period in 2017.

Sales came in at $316.7 million, an increase of 29% from $245 million in the year-ago quarter.

Analysts expected earnings of $0.03 per share and sales of $307 million, according to Thompson Reuters. The number of active customers came in at 2.7 million, up 30% on a year-over-year basis.

Stitch Fix CEO Comments

Katrina Lake commented on the results saying, “In addition to driving strong net revenue, net income, and adjusted EBITDA, we grew our active client count to 2.7 million, an increase of 30% year-over-year. We continue to balance growth and profitability, demonstrated by our ability to consistently deliver top-line growth of over 20% even as we invest in category expansions, technology talent, and marketing. Our third quarter results demonstrate continued positive momentum for Stitch Fix and the power of our unique ability to deliver personalized service at scale.”

“Our new Stitch Fix Kids offering is a testament to the scalability of our platform. We’re excited for Stitch Fix to style everyone in the family and to create an effortless way for parents to shop for themselves and their children. Our goal is to provide unique, affordable kids clothing in a wide range of styles, giving our littlest clients the freedom to express themselves in clothing that they love and feel great wearing,” Lake added.

Stitch Fix Inc Company Profile

Stitch Fix, Inc, is an online personalized styling company that offers a range of accessories and apparel through its mobile app and website in the U.S.

It offers various types of products including blouses, jewelry, skirts, denim, handbags, dresses, blouses, shoes, and skirts.

It incorporates data science in its business, including forecasting demand, optimizing inventory, designing of new apparel, and predicting purchase behavior.

The company stock keeping unit includes basic data, like pattern, material and silhouette, brand, size, color; product measurements, nuanced descriptors, and client feedback.

It provides merchandise from more than 700 brands, including its own private labels, as well as emerging and established brands. The company was founded in 2011 and its head quarter are located in San Francisco, California. –YahooFinance

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