Earnings Results: Clothing discounts are weighing on Stitch Fix sales, as it shakes up its executive team

by | Mar 7, 2023 | Stock Market

Shares of Stitch Fix Inc. fell after hours on Tuesday after the online clothing-selection and styling service offered up dimmer sales forecasts, as it tries to shore up profits and deal with aggressive discounting from retailers competing for inflation-weary shoppers. And in the latest executive shake-up for the company, Stitch Fix
said that Dan Jedda would step down as chief financial officer “to pursue another opportunity.” He will be replaced by David Aufderhaar, current senior vice president of finance, on April 3.

Executives forecast third-quarter sales of between $385 million and $395 million, compared with FactSet forecasts for $394 million. For its full fiscal year, which ends on July 29, they forecast sales of $1.625 billion to $1.645 billion — a bit narrower than forecasts given late last year for $1.6 billion and $1.7 billion. Wall Street was expecting $1.647 billion. For its second quarter, Stitch Fix reported a net loss of $65.6 million, or 58 cents a share, compared with $30.9 million, or 28 cents a share, in the same quarter that ended a year earlier. Revenue fell to $412.1 million, compared with $516.7 million in the prior-year quarter. Analysts polled by FactSet expected Stitch Fix to report a per-share loss of 34 cents, on revenue of $413 million. Shares …

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