By Senad Karaahmetovic

Shares Stitch Fix Premarket trades for (NASDAQ:) fell more than 14% Friday, after the company announced a larger-than-expected loss.

SFIX reported a 72c loss per share in Q3, compared with 18c during the previous year and greater than the 53c loss per share. SFIX’s net revenue fell 8% YoY to $492.9 Million, below its consensus projection of $492.7 millions. SFIX had 3.91 million clients, a decrease of 4.7% YoY. However, revenue per client was $553. This is an increase of 15%.

Stitch Fix anticipates that Q3’s net revenue will be between $485m and $495m, which is below the analyst consensus figure of $497.2million. The fourth-quarter adjusted EBITDA loss is estimated to be between $25 million-30 million.

In an effort to improve profitability, the company announced that it would reduce its workforce by 15%.

Kunal Madhukar, UBS analyst, reiterated his Neutral rating with a target price of $10.00 per share.

“The results and the guide did not evoke any optimism in either SFIX’s Fix and FreeStyle TAM or in management’s ability to execute. With inventory increasing q/q, SFIX is like any other apparel retailer subject to consumers’ shifting preferences, and much like other retailers, likely will be impacted by a more promotional environment as other retailers try to sell their excess inventory ahead of the next season,” Madhukar told clients in a note.

Cory A Carpenter, J.P. Morgan Analyst, lowered the price target from $10.00 to $8.00 per Share

“While earnings weren’t great and highlighted continued challenges as the company transitions to a Fix + Freestyle model, we viewed SFIX results to be much better than feared & we were surprised shares traded down another ~16% after hours,” Carpenter commented.