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Stitch Fix Soars on Returning to Profits, Revenue Tops $2 Billion for First Time By Investing.com

by Mike Robinson

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© Reuters.

By Dhirendra Tripathi

Investing.com – Stitch Fix stock (NASDAQ:) soared by 13% in Wednesday’s premarket as strong growth in women’s and children’s segments helped the company swing back to profit in its fiscal fourth quarter.

The active clients of the personal styling website grew 18% year-over-year, while net revenue per client rose by 4%. This was due to buyers returning to their grooming concerns after the pandemic.

Company reaped the benefits of expanding branded shops and lower client churn rate, as well as higher product margins. In terms of advertising and transport spending, it also received more bang-for-its-buck.

On-year, net revenue rose 29% to $571.2billion. This marks the company’s first annual revenue surpassing $2 billion.

Net profit was $21.46 million, compared to a loss of $44.46 million in last year’s fourth quarter.

Stich Fix expects that its first-quarter net revenues will be $567.5million, an increase of 16%. Full-year net revenue is seen growing by 15% from last year’s $2.1 billion.

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