Stitch Fix shares soar as sales top estimates, styling service raises full-year outlook

Earnings

In this article

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. is scheduled to release earning on June 7.
Tiffany Hagler-Geard | Bloomberg | Getty Images

Stitch Fix shares soared on Monday after the online shopping and styling service reported a narrower-than-expected loss in its fiscal third-quarter, as sales topped analysts’ estimates, driven by consumers refreshing their wardrobes.

The company raised its revenue outlook for the full year, after previously lowering it due to the uncertainty stemming from the Covid pandemic. And it offered a better-than-expected sales outlook for its fiscal fourth quarter.

Here’s how Stitch Fix did during the period ended May 1 compared with what analysts were anticipating, using Refinitiv estimates:

  • Loss per share: 18 cents vs. 27 cents expected
  • Revenue: $535.6 million vs. $511 million expected

Stitch Fix’s loss narrowed to $18.8 million, or 18 cents per share, compared with a loss of $33.9 million, or 33 cents per share, a year earlier. That was better than the 27-cent loss expected by analysts.

Revenue grew 44% to $535.6 million from $371.7 million a year earlier, topping estimates for $511 million.

As of market close on Monday, Stitch Fix shares are down about 1% year to date. The company’s market cap is $6.2 billion.

Find the full financial press release from Stitch Fix here.

This story is developing. Please check back for updates.

Articles You May Like

Debt ceiling deal would push student loan borrowers into repayment by fall
Major central banks were expected to pause rate hikes soon. Now it’s not so clear cut
Memorial Day air travel tops 2019 levels as consumers keep shelling out for trips
DirecTV reaches deal to provide NFL ‘Sunday Ticket’ to bars and restaurants
Consumers are starting to fire up China’s pandemic-battered economy, two ETF experts find