Stitch Fix stock tanks 20% in extended trading: what happened?

Stitch Fix Inc (NASDAQ: SFIX) on Tuesday reported better-than-expected results for its fiscal second quarter. The stock still tanked 20% as the U.S. company gave dovish sales guidance for Q3.

Notable figures in Stitch Fix Q2 earnings report

Lost $30.9 million in Q4 versus the year-ago figure of $21 million.
Per-share loss stood at 28 cents compared to last year’s 20 cents.
At $517 million, revenue was up 3.0% YoY, as per the earnings press release.
FactSet consensus was for 31 cents of per-share loss on $515 million in sales.
Active clients grew 4.0%, helping an 18% increase in net revenue per active client.

Stitch Fix guidance for the current quarter

For fiscal Q3, Stitch Fix forecasts its revenue to fall in the range of $485 million to $500 million that represents up to 10% year-over-year decline. In comparison, analysts had called for $559 million in revenue this quarter. In the earnings press release, CEO Elizabeth Spaulding said:

We continue to experience challenges with onboarding and conversion of clients, which are not where we want them to be. We remain confidence in our long-term strategy, and are resolutely focused on building and enhancing the overall client experience, with an emphasis on growing active clients.

The stock has more than halved in 2022 to date.

The post Stitch Fix stock tanks 20% in extended trading: what happened? appeared first on Invezz.

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