The Stitch Fix app for download in the Apple App Store on a smartphone, arranged in Hastings-on-Hudson, New York, USA, on Saturday, June 5, 2021. Stitch Fix Inc. should release a profit on June 7.
Tiffany Hagler-Guard Bloomberg | Getty Images
Shares of Stitch Fix jumped on Monday after the online shopping and styling service reported less-than-expected loss in its fiscal third quarter.
Sales exceeded the forecasts of analysts, driven by consumers who are refreshing their wardrobes and looking for styles in new sizes.
Shares have recently risen about 1
Stitch Fix also raised its full-year revenue forecast after lowering it due to uncertainty stemming from the Covid pandemic. And it offered better-than-expected sales forecasts for its fiscal fourth quarter.
President and incoming CEO Elizabeth Spaulding noted that as the retail background for clothing improved across the country, the company is gaining momentum.
Here’s how Stitch Fix did on May 1, compared to analysts’ expectations using Refinitiv’s estimates:
- Loss per share: 18 cents against an expected 27 cents
- Revenue: $ 535.6 million versus $ 511 million expected
Stitch Fix’s loss narrowed to $ 18.8 million, or 18 cents a share, from a loss of $ 33.9 million, or 33 cents a share, a year earlier. That was better than analysts expected a loss of 27 cents.
Revenue rose 44 percent to $ 535.6 million from $ 371.7 million a year earlier, exceeding estimates of $ 511 million.
The number of active customers increased by 20% on an annual basis to 4.1 million and increased by 234,000 compared to the previous quarter. Stitch Fix identifies active customers as people who purchased an item directly from its website in the previous 52 weeks of the last day of the quarter.
Active client revenue reached $ 481, down 3% from a year earlier but up 3% from the previous quarter.
For fiscal 2021, Stitch Fix calls for revenues to be in the range of $ 2.07 to $ 2.08 billion, which would mean an increase of 20.9% to 21.5% on an annual basis. Earlier this year, it lowered its annual sales forecast to a range of 18% to 20%. Analysts are looking for annual revenue growth of 19.1%.
For the fourth quarter, sales are expected to grow 21.8% to 24% from a year earlier. Analysts were looking for a 20.6% increase.
As of Monday’s market close, Stitch Fix shares have fallen about 1% year to date. The market capitalization of the company is 6.2 billion dollars.
Find the full financial press release from Stitch Fix here.