Key takeout
Stitch Fix (SFIX) shares sunk Wednesday despite the class subscription services company reporting it has surpassed its third-quarter results as its active client base has shrunk both last year and the last quarter.
The online apparel subscription service said on Tuesday that it generated revenue of $325.02 million in quarter after the bell, but lost $0.06 per share each.
Stitch Fix has 2.35 million active clients at the end of the quarter, down 0.8% from the last quarter and over 10% from last year, but slightly outperforming the number analysts had forecast.
“At the current stage of our transformation, we are focused on strengthening our role as a retailer in apparel and accessories selection by consistently providing the most client-centric and personalized shopping experience,” CEO Matt Baer said.
This quarter, Stitch Fix Fix is ​​the top end in line with analyst consensus, with revenue forecasts of between $298 million and $303 million. The company also lifted its full-year outlook and is currently forecasting revenues of $1.254 million to $1.259 billion, up from $1.225 billion previously to $1.24 billion.
After a surge in pre-market trading, Stitch Fix shares fell nearly 9% in recent trading.
