“Q2 was another strong quarter for us, delivering net revenue of $370.3 million, exceeding our guidance and representing 25% year-over-year growth,” said CEO Katrina Lake.
For the fiscal year 2019, which ends on August 3, 2019, Stitch Fix lifted its revenue target to a range of $1.53 billion to $1.56 billion, representing an annual growth of 25% to 27%, buoyed by the recent top-line momentum, ongoing client demand and engagement trends. Earlier, the company had estimated revenue to be in the range of $1.49 billion to $1.53 billion.
For Q3 2019, Stitch Fix expects revenue to be $388 million and $398 million, representing a year-over-year growth of 22% to 26%.
The San Francisco-based firm has plans to introduce its personalization platform to the UK clients by Q4 2019. Stitch Fix had established local presence by hiring a U.K. team and has been investing in on-the-ground operations.
It’s worth noting that retailer J.C. Penney (JCP) withdrew its clothing subscription service that it provided to customers with its partner Bombfell. Stitch Fix faces a stiff competition from Amazon’s (AMZN) Prime Wardrodbe services that was launched in June 2018 and Nordstrom’s (JWN) Trunk Club.
Stitch Fix stock, which ended Monday’s trading session up 4.98% at $26.98, had gained 56% since the beginning of 2019 and 18% in the past 12 months period.