By Davit Kirakosyan

Stitch Fix After the Q3 report and confirmation of the workforce reduction plan, shares traded more than 15% below their original price.

Quarterly EPS ($0.72) was lower than the consensus estimate ($0.55). Year-over-year revenue declined by 8% to $493.26million, which is lower than the consensus estimate.

While active clients decreased 5% over the year to 3,907,000 net revenue per client (RPAC), increased 15% to $553.

Company announced that it would reduce its salaried workforce by approximately 15%, or 4%. These layoffs, along with other changes will result in annual cost savings of between $40 and $60 million for the company in 2023. In Q4/22, the company expects to pay restructuring and other one time charges between $15 and $20 million.

The Q4 revenue will be between $485 and $495million, as opposed to $495 million according to consensus estimates.

Stitch Fix’s shares fell 59% in the year-to-date earnings results.