Services

Stitch Fix Wants to Drive on the Left Side of the Road

Chris Lange

Published: October 2, 2018 9:50 am

Last Updated: January 11, 2020 5:02 pm

When Stitch Fix Inc. (NASDAQ: SFIX) released its fiscal fourth-quarter financial results after the markets closed on Monday, the company said that it had $0.17 in earnings per share (EPS) and $318.3 million in revenue. That compared with consensus estimates of $0.04 in EPS and $318.9 million in revenue, as well as the net loss of $0.04 per share and $258.3 million posted in the same period of last year.

During the quarter, the company reported 2.7 million active customers, up 25% from a year ago, while analysts had estimated 2.81 million.

One of the major announcements in the report was that the firm would be expanding into the United Kingdom by the end of the 2019 fiscal year. Management believes that its ability to create a uniquely personalized shopping experience is something that will resonate with consumers and brands outside of the United States.

Looking ahead, the company did not offer any guidance in the report, but the consensus estimates are calling for $0.05 in EPS and $359.16 million in revenue for the fiscal first-quarter.

Katrina Lake, Stitch Fix founder and CEO, commented:

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.

Shares of Stitch Fix traded down almost 26% to $33.11 early Tuesday, with a consensus analyst price target of $36.33 and a 52-week trading range of $14.48 to $52.44.