Stitch Fix tops revenue estimates, ups full-year guidance
San Francisco-based online styling service Stitch Fix, Inc. reported Q3 revenue of $535.6 million on Monday, an increase of 44% from $371.7 million in the prior-year period, which also beat the estimate of $511 million put forward by financial analysts surveyed by Refinitiv and cited by CNBC.
The rise in revenue was boosted by a year-over-year increase of 20% in the platform’s active clients, which totaled 4.1 million in the quarter and helped offset a 3% decrease in revenue per active client, which was $481.
The company’s quarterly net loss came to $18.8 million, or $0.18 per diluted share, compared to a loss of $34.7 million, or $0.33 per diluted share, in the same period in the previous year. Refinitiv estimates had expected a loss of $0.27 per share.
Year to date, Stitch Fix’s revenue totaled $1.53 billion in the first nine months of the fiscal year, up 21% from $1.27 in the same period in the previous year. Net loss for the period was $30.3 million, or $0.29 per diluted share, compared to a loss of $22.7 million, or $0.22 per diluted share, last year.
In line with its stronger-than-expected quarterly results, Stitch Fix increased its full-year revenue outlook to between $2.070 billion and $2.080 billion, representing a year-over-year rise in the range of 20.9% to 21.5% growth.
In the fourth quarter, the company expects to report net revenue of between $540 million and $550 million, which would reflect an increase of between 21.8% and 24.0% compared to the same quarter in the previous year.
Following Stitch Fix’s announcement of its strong third quarter and improved outlook, the company’s stock was up 15% in extended trading on Monday.
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