Stitch Fix (SFIX) Q4 2021 earnings
The Stitch Fix application for download in the Apple App Store on a smartphone arranged in Hastings-on-Hudson, New York, U.S., on Saturday, June 5, 2021. Stitch Fix Inc. plans to announce its June 7 earnings.
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Stitch Fix shares jumped more than 17% in extended trading Tuesday after the online shopping and styling service reported a surprise profit for its fiscal fourth quarter.
Analysts were also surprised by the outsized growth of its kids and women’s categories. Sales for three months ended July 31, however, came in above what they expected.
As many return to school or social events, consumers have been spending a lot on clothes in recent months. Many have mentioned the necessity for clothes to fit after gaining weight or losing it during the pandemic.
Here’s how Stitch Fix did compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: 19 cents vs. a loss of 13 cents expected
- Revenue: $571.2 million vs. $548 million expected
Net income attributable to shareholders was $28 million, or 19 cents per share, in the latest period. It posted a loss of 44 cents per share last year, which was $44.5 million. Analysts expected the company would post a loss in excess of 13 cents per shares.
From $443.4million a year ago, revenue grew to $571.2million. Analysts expected $548 million. This was higher than the actual revenue.
Stitch Fix has reported almost 4.2 million active users, an increase of 18% over the previous year. According to the company, net revenue per active customer was $505 and exceeded the $500 threshold.
Stitch Fix considers active clients those who ordered “Fix” subscriptions or purchased an item from their website within the 52 week period ending on the last day of quarter.
Stitch Fix opened its “Freestyle” direct-buy service to the public last month. People can shop Stitch Fix online for specific items without signing up for a subscription.
Stitch Fix CEO Elizabeth Spaulding stated that this will help it grow its market.
Stitch Fix expects to see sales between $560 million and $575 million in its first fiscal quarter. This is lower than analysts expected at $588million.
Stitch Fix predicts that revenue will increase 15% in fiscal 2019, compared to the previous year. Refinitiv polled analyst looking for an 18% growth.
Stitch Fix shares fell nearly 39% as of Tuesday’s close to the market. Market cap for the company is $3.8 billion.