Stitch Fix shares just lost 10%: what happened?
Stitch Fix Inc (NASDAQ: SFIX) is down 10% in extended trading on Tuesday after the online personal styling company cited macro headwinds and reported disappointing results for its fiscal fourth quarter.
Stitch Fix Q4 financial highlights
Lost $96.3 million that translates to 89 cents per shareRevenue tanked 16% year-on-year to $481.9 millionConsensus was 63 cents loss on $488.7 million revenueEnded with 9.0% less active clients than last yearNet revenue per client of $546 was up 8.0% YoY
In the same quarter last year, Stitch Fix had $21.5 million in profit or 19 cents per share. In the earnings press release, CEO Elizabeth Spaulding said:
Today’s macro environment and its impact on retail spending has been a challenge to navigate but we’re capitalising on every customer touchpoint to build long-term relationships and reignite net active client growth.
Stitch Fix shares down on weak guidance
Nonetheless, Stitch Fix said it remains committed to finding its way back to profitability. To that end, it plans on cutting its workforce by 330 jobs. The Chief Executive added:
This year, we launched Freestyle, which combined with our original Fix offering, broadens our ecosystem and expands our TAM. Our core differentiators remain relevant as ever and cement our place as the global destination for personalised styling.
For the full financial year, Stitch Fix forecasts up to $1.86 billion in revenue on $45 million to $25 million of adjusted EBITDA loss, including $455 million to $465 million revenue and $15 million to $10 million of adjusted EBITDA loss it expects this quarter.
In July, insider Bill Gurley significantly raised his stake in the Nasdaq-listed firm that we reported here. Wall Street has a consensus “hold” rating on Stitch Fix shares that are now down more than 75% year-to-date.