Stitch Fix announces 7th consecutive quarter of double-digit growth
Online fashion subscription service Stitch Fix said on Wednesday that its third quarter was another strong one, marking its seventh consecutive quarter of over 20 percent revenue growth.
The San Francisco-based Stitch Fix said third-quarter net revenues increased 29 percent year-over-year, to $408.9 million. That topped the highest analysts estimate at $398 million, as reported by Bloomberg.
The U.S. e-commerce company also registered net income of $7 million, or 7 cents a share, for the quarter ended April 27, 2019, down from $9.5 million, or 9 cents a share, a year ago. Diluted earnings per share were 7 cents a share.
Perhaps most impressive is the company’s ability to attract and retain customers. The company grew its active client list by 17 percent year-over-year, reaching a current active client list of 3.1 million for the three months ending April 27.
Likewise, Stitch Fix has also been engaging its current client base, growing revenue per active client by 8 percent year-over-year.
“These results demonstrate our ability to attract new clients and to serve our existing clients well,” said Stitch Fix founder and CEO Katrina Lake.
“The continued strength of our women’s category and the growth of our men’s category give us even more confidence in our ability to scale new categories and geographies. As I look forward, I’m excited about the opportunities ahead to delight even more clients around the world.”
As a result, the company raised its revenue forecast for 2019 to a range of $1.57 billion and $1.58 billion, up from previous estimates of $1.53 billion to $1.56 billion.
For the fourth quarter, revenue is expected to be between $425 million and $435 million.
Katrina Lake launched Stitch Fix in 2011. The company went on to become a public-listed company in 2017 and has since maintained a stunning growth trajectory in the last seven quarters.
Most recently, the company made its UK debut.
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