- Huw Hughes
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American online styling service Stitch Fix reported an increase in
second-quarter revenues on Monday that came in below analysts’
expectations, causing shares to drop 39 percent after closing.
Net revenue in the three months to 1 February increased 22 percent
year-on-year to 451.8 million dollars, though analysts had expected
revenues of around 452.6 million dollars.
The San Fransisco based company cited heightened promotional activity
resulting in lower-than-expected order values.
It now expects full-year revenue to be between 1.8 and 1.84 billion
dollars, down from a previous estimate of between 1.9 and 1.93 billion
dollars.
Net income fell to 11.4 million dollars, or 0.11 dollars per diluted
share, compared to 12 million dollars, or 0.12 dollars per diluted
share.
Its number of active clients increased by 17 percent year-on-year to 3.5
million. Net revenue per active client increased by 8 percent to
501 dollars.
“We are pleased to deliver another strong quarter in Q2,” Stitch Fix
founder and CEO Katrina Lake said in a statement. “Net revenue was 452
million dollars, representing 22 percent year-over-year growth, in line
with our guidance. We grew active clients to 3.5 million, an increase of 17
percent year over year, and grew net revenue per active client by 8 percent
year over year, our seventh consecutive quarter of growth and a reflection
of our unique personalization capabilities.
“This quarter, we are excited to expand our new direct buy offerings to
even more clients. As we continue to evolve our personalization
capabilities we’re confident in our ability to capture additional market
share, and deliver on our mission to transform the way people find what
they love.”
Photo courtesy of Stitch Fix
