Katrina Lake, CEO of Stitch Fix
Adam Jeffery | CNBC
Stitch Fix shares tumbled more than 25% Monday after the personal styling service reported quarterly sales that missed analysts’ estimates and issued a disappointing outlook for the current quarter and full year.
In a separate letter to shareholders, Stitch Fix said it now expects net revenue in fiscal 2020 to range between $1.81 billion and $1.84 billion. Analysts had been calling for $1.92 billion, according to Refinitiv data.
It said it has witnessed “heightened promotional activity across retail.” And so Stitch Fix’s current customers are spending less per order, on average, resulting in lower order values than the company had projected.
Its shares were last down more than 30% in after-hours trading on the news. Amid a broader market selloff, Stitch Fix shares closed Monday down more than 6%. The stock is down more than 18% over the past 12 months. The company has a market cap of about $2.2 billion.
Here’s how the company did during the second quarter of fiscal 2020 compared with what analysts were expecting, based on Refinitiv data:
- Earnings per share: 11 cents, adjusted, vs. 6 cents expected
- Revenue: $451.8 million vs. $452.5 million expected
The clothing subscription service reported active clients of 3.5 million, up 17% year over year.
“As we continue to evolve our personalization capabilities, we’re confident in our ability to capture additional market share,” CEO Katrina Lake said in a statement.
This is a developing story. Please check back for updates.