Stitch Fix, Inc (NASDAQ: SFIX)
Shares of Stitch Fix Inc. lost as much as $8.81, or 19.74% in postmarket session on Monday after the U.S. online clothing retailer slightly fell short of analyst estimates for revenue. However, the company reported an upbeat profit of $18.3 million for the three months ended July 31, 2018.
The company also announced plans to expand into the United Kingdom. SFIX stock ended the regular session at $44.63. The shares had rallied more than 72% since the beginning of the year through Monday’s close.
SFIX Earnings & Outlook
The company posted a net income of $18.3 million, or $0.18 per share, from a net loss of $4.5 million, or $0.18 per share, in the same period last year. Fourth-quarter net sales were $318.3 million, up 23% from $258.3 million in the earlier-year period.
Analysts were expecting earnings of $0.06 per share on net sales of $318.9 million, according to figures compiled by Thompson Reuters. Stitch Fix saw the number of active clients jump by 5% from 2.7 million in the prior-year period, which was below the estimates of Wall Street analysts.
Looking ahead, analysts expect earnings of $0.06 per share on net sales of $360.1 million for the first quarter of fiscal 2019. Analysts have projected net sales in the range of $354 million to $360 million. For the full year, Stitch Fix sees net sales of $1.49 million with analysts expecting net sales in the range of $1.47 million to $1.53 billion.
Stitch Fix CEO Comments
Stitch Fix Founder and Chief Executive Officer Katrina Lake had this to say on the results, “Q4 was another strong quarter for us. We grew our active client count 25% year over year and delivered $318.3 million in net revenue and $11.1 million in adjusted EBITDA. In our first year as a public company, we have demonstrated our ability to transform the shopping experience while consistently delighting our clients across Women’s, Men’s and Kids. I’m proud of our results and excited for the future. This is just the beginning for Stitch Fix.”
Lake continued, “We are pleased to announce our expansion into the UK by the end of the fiscal year 2019. We believe our ability to create a uniquely personalized shopping experience is something that will resonate with consumers and brands outside of the U.S. We can’t wait to show our first UK clients how effortless, convenient and fun Stitch Fix is.”
Stitch Fix, Inc. Company Profile
Stitch Fix, Inc. sells a range of apparel, shoes, and accessories through its Website and mobile app in the United States. It offers denim, dresses, blouses, skirts, shoes, jewelry, and handbags for men and women under the Stitch Fix brand.
The company was formerly known as Rack Habit Inc. and changed its name to Stitch Fix, Inc. in October 2011. Stitch Fix, Inc. was founded in 2011 and is headquartered in San Francisco, California. – Yahoo Finance