The Stitch Fix application will be available for download on Saturday, June 5, 2021 from the Apple App Store on a smartphone in Hastings-on-Hudson, New York, USA. Stitch Fix Inc. is expected to be released on June 7.
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Stitch Fix shares rose Monday after the online shopping and styling service reported a smaller-than-expected loss in its fiscal third quarter.
Sales exceeded analysts’ estimates, driven by consumers freshening up their wardrobes and looking for styles in new sizes.
The stock recently rose about 16% in extended trading.
Stitch Fix also raised its full-year revenue outlook, having previously lowered it due to uncertainty posed by the Covid pandemic. And it offered better-than-expected sales prospects for the fiscal fourth quarter.
President and incoming CEO Elizabeth Spaulding noted that as apparel retailing improves across the country, the company is building momentum.
Here’s how Stitch Fix fared during the period ending May 1 compared to what analysts expected, using Refinitiv estimates:
- Loss per share: 18 cents vs. 27 cents expected
- Revenue: $535.6 million vs $511 million expected
Stitch Fix’s loss fell to $18.8 million, or 18 cents per share, from a loss of $33.9 million, or 33 cents per share, a year earlier. That was better than the 27 cent loss that analysts had expected.
Revenue grew 44% to $535.6 million, compared to $371.7 million a year earlier, surpassing estimates of $511 million.
The number of active customers grew 20% year over year to 4.1 million, up 234,000 from the previous quarter. Stitch Fix defines active customers as people who have purchased an item directly from its website in the last 52 weeks from the last day of the quarter.
Revenue per active customer came in at $481, down 3% from a year earlier, but up 3% from the prior quarter.
For fiscal year 2021, Stitch Fix is now asking for revenue of $2.07 billion to $2.08 billion, which would represent a year-over-year growth of 20.9% to 21.5%. Earlier this year, it had lowered its annual sales forecast to a growth margin of 18% to 20%. Analysts were looking for year-over-year revenue growth of 19.1%.
For the fourth quarter, it expects sales to rise 21.8% to 24% from a year earlier. Analysts were looking for a 20.6% increase.
As of the close of the market on Monday, Stitch Fix shares are down about 1% so far. The company’s market cap is $6.2 billion.
Find Stitch Fix’s full financial press release here.