Categories AlphaGraphs, Earnings, Retail

Stitch Fix’s shares soar as Q3 results beat expectations

Stitch Fix Inc. (NASDAQ: SFIX) topped market expectations on both revenue and earnings for the third quarter of 2019, sending shares jumping over 29% in after-market hours on Wednesday. Analysts had forecasted a loss of $0.03 per share on revenue of $395 million.

Net revenue rose 29% year-over-year to $408.9 million, reflecting growth in both active clients and net revenue per active client.  

Stitch Fix reports third quarter 2019 results

Net income was $7 million, or $0.07 per share, compared to $9.4 billion, or $0.09 per share, in the year-ago period.

Active clients increased 17% year-over-year to 3.1 million.

Stitch Fix Active Clients quarterly trend

CEO Katrina Lake said, “We grew our active clients to 3.1 million, an increase of 17% year over year. At the same time, we continue to drive engagement with our existing client base, growing revenue per active client 8% year over year. These results demonstrate our ability to attract new clients and to serve our existing clients well. The continued strength of our Women’s category and the growth of our Men’s category give us even more confidence in our ability to scale new categories and geographies.”

Gross margin increased by 150 basis points to 45.1%, marking the fifth consecutive quarter of year-over-year gross margin improvement. The growth was driven by lower clearance activity and lower shrink expense.  

For the fourth quarter of 2019, Stitch Fix expects net revenue to increase 34-37% year-over-year to $425 million to $435 million. Adjusted EBITDA is expected to be $5-10 million. For fiscal-year 2019, net revenue is expected to grow 28-29% year-over-year to $1.57 billion to $1.58 billion while adjusted EBITDA is estimated to be $38-43 million.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

What to look for when CVS Health (CVS) reports Q3 earnings

Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain

eBay (EBAY): A few factors that helped drive growth in Q3 2024

Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,

CVX Earnings: Chevron reports lower revenue and profit for Q3 2024

Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top