Are Stitch Fix Earnings Big Enough to Fend Off the Bears?

By Chris Lange Updated Jan 11, 3:43AM EST · Published Oct 1, 4:23PM EDT

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Stitch Fix, Inc. (NASDAQ: SFIX) released fiscal fourth-quarter financial results after markets closed Tuesday. The after-hours session has seen ridiculous swings in the stock as the bulls and bears are fighting this one out.

It’s worth pointing out that Stitch Fix recorded its highest short interest in the most recent settlement date at over 19 million. Now it’s a question of whether or not these earnings are good enough to fend off the bears.

The firm said that it had $0.07 in earnings per share (EPS) and $432.1 million in revenue, compared with consensus estimates that called for $0.04 in EPS and $432.28 million in revenue. The same period from last year had $0.18 in EPS and sales of $318.3 million.

During the quarter, active clients increased 18% year over year to 3.2 million.

The company did not mention any guidance in the earnings report. However, consensus estimates are calling for $0.06 in EPS and $451.03 million in revenue for the fiscal first quarter.

[nativounit]

Katrina Lake, Stitch Fix founder and CEO, commented:

Q4 was another strong quarter for us, delivering net revenue of $432.1 million, representing 36% year-over-year growth. We grew our active clients to 3.2 million, an increase of 18% year over year. For the full year, we grew net revenue 29% year over year to $1.6 billion and captured more of our large addressable client base by adding nearly half a million active clients in 2019. In addition, we consistently demonstrated our ability to deliver great client experiences, growing revenue per active client in every quarter of fiscal 2019, including 9% year over year in Q4. These gains are a testament to the strength of our data science capabilities.

Shares of Stitch Fix closed Tuesday at $20.06, with a 52-week range of $16.05 to $37.72. The consensus analyst price target $34.13. Following the announcement, the stock was last seen up 2% at $20.41 in the after-hours session.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.