Stitch Fix (SFIX) reported its first quarter 2019 results. Earnings of 10 cents per share and revenue of $366 million exceeded Street’s forecast. Analysts had expected the online fashion retailer to post earnings of 3 cents per share on revenue of $358 million. The stock was up about 8% during the extended trading hours.
Revenue rose 24% year-over-year and active clients count grew 534,000 or 22.3% compared to the last year. GAAP EPS was 10 cents and adjusted EBITDA was $14.3 million for the quarter ended October 27, 2018.
For Q2 2019, Stitch Fix expects revenue to be in the range of $360 million to $368 million, representing a year-over-year growth of 22-24%. Historically, the company had experienced lower quarter-over-quarter net revenue growth in fiscal Q2 due to slower active client growth during the holiday season. The subscription-based styling service firm expects active client count to be relatively flat quarter-over-quarter in Q2.
For the fiscal year 2019, which ends on August 3, 2019, Stitch Fix estimates revenue to be in the range of $1.49 billion to $1.53 billion, representing an annual growth of 21% to 25%.
“This quarter, we added new brands to the platform across Women’s, Men’s and Kids, including Michael Kors, Madewell, The North Face, Bonobos and Converse. In Men’s, we launched expanded sizing, offering up to 3XL and a 48-inch waist as well as short and tall fit options. In Plus, we continue to get great client feedback on the fit of our denim, and have expanded our offerings there too,” said COO Mike Smith.
During the after-market hours, Stitch Fix swung to red after trading in the positive territory for the first half an hour as the investors were not happy with the weak guidance provided. Stitch Fix stock, which dipped by 1.48% to $25.97 at the end of Monday’s regular trading session, had been trading between $18 and $52.44 in the past 52 weeks.