Earnings Results: Stitch Fix stock falls on weaker-than-expected sales outlook, executive shake-up

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 a weaker-than-expected sales forecast. And in the latest executive shake-up for the company, Stitch Fix
said that Dan Jedda would step down as chief financial officer β€œto pursue another opportunity.” He will be replaced by David Aufderhaar, current senior vice president of finance, on April 3.

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. Active clients β€” or users who checked out or bought clothes over the past 52 weeks β€” fell 11% to 3.57 million. Analysts polled by FactSet expected Stitch Fix to report a per-share loss of 34 cents, on revenue of $413 million. They expected active clients of 3.6 million. 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. Wall Street was expecting $1.647 billion. Shares fell 4.2% after hours. The company reported after announcing in January that it would cut salaried positions by 20% and close its Salt Lake City distribution center. At that time, Stitch Fix said that Elizabeth Spaulding …

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