Aaron McDade
1 min read
In This Article:
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Stitch Fix topped fiscal third-quarter estimates, with the clothing subscription provider posting a smaller loss than expected.
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The company reported a roughly 10% drop in active clients from the same time a year ago.
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Stitch Fix also lifted its full-year revenue projections, but shares fell in Wednesday morning trading.
Stitch Fix (SFIX) shares sank Wednesday despite the clothing subscription service firm reporting fiscal third-quarter results topped expectations, as its active client base shrank from both last year and last quarter.
The online apparel subscription service said after the bell Tuesday that it generated $325.02 million in revenue in the quarter, while it lost $0.06 per share, each better than analyst estimates compiled by Visible Alpha.
Stitch Fix had 2.35 million active clients at the end of the quarter, down 0.8% from last quarter and more than 10% from the same time last year, but still just above the number that analysts had forecast.
"Now in the growth phase of our transformation, we are focused on cementing our role as the retailer of choice for apparel and accessories by consistently delivering the most client-centric and personalized shopping experience," CEO Matt Baer said.
For the current quarter, Stitch Fix forecast revenue of $298 million to $303 million, with the top end in line with the analyst consensus. The company also lifted its full-year outlook, now projecting revenue of $1.254 billion to $1.259 billion, up from $1.225 billion to $1.24 billion previously.
After surging in premarket trading, Stitch Fix shares were down nearly 9% in recent trading.
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