Following the company’s report, its shares dropped. SFIX stock closed at $31.38 per share yesterday, or 7.95% up. However, in prolonged trade, it lost as much as 16.35% to $26.25.
On Tuesday, the world’s leading online personal styling platform Stitch Fix Inc (NASDAQ: SFIX) delivered its fiscal fourth-quarter 2020 report. As Stitch Fix reported a larger-than-expected loss for Q4, its stock sharply declined in after-hours trading.
Over the last 2 years, Stitch Fix has beaten revenue estimates 75% of the time and EPS estimates 100% of the time. Therefore, analysts were betting on the company this time as well.
Stitch Fix Fiscal Q4 Results: Expectations vs. Reality
For the fiscal fourth quarter that ended July 31, Wall Street was expecting the company to lose 16 cents per share on revenue of $414.54 million. Further, analysts were predicting active clients to be 3.4 million and annual net revenue per active client of $498.02.
Meanwhile, the online personal styling company has underperformed the expectations. Stitch Fix reported a Q4 loss of 44 cents per share, while its revenue of $443 million topped the estimates. On an adjusted basis, the net revenue marked an 11% increase year over year.
Further, the company’s active clients totaled 3.5 million, an increase of 9% year over year.
Stitch Fix founder and CEO Katrina Lake stated:
“I’m very pleased with our strong Q4 results and our return to topline growth. We grew active clients to 3.5 million, an increase of 9% year over year, and generated $443 million in net revenue, reflecting 11% adjusted year-over-year growth.”
She added:
“I’m proud of our team for successfully navigating through the deepest impacts of COVID-19 and am excited to bring our model of an individual and deeply personalized shopping experience to even more consumers as they transition to a future of online shopping.”
Despite an impressive loss, Stitch Fix managed to rebound from a tough fiscal third quarter, when its revenue was $371.73 million.
SFIX Stock Down After Hours
Following the company’s report, its shares dropped. SFIX stock closed at $31.38 per share yesterday, or 7.95% up. However, in prolonged trade, it lost as much as 16.35% to $26.25. SFIX market cap is $2.99 billion, year-to-date change is a 22.29% increase.
The current consensus rating among analysts for Stitch Fix is for a Strong Buy, with an average price target of $31. The price target ranges from a high of $36 to a low of $25.
Stitch Fix is an online personal styling service that is reinventing the shopping experience by delivering one-to-one personalization to our clients through the combination of data science and human judgment. Аounded in 2011 by Katrina Lake, the company helps millions of people discover and buy what they love through personalized selections of apparel, shoes, and accessories, curated by Stitch Fix stylists and algorithms.