Stitch Fix: Q1 Results Top Estimates, Q2 Revenue Guidance Disappoints

Stitch Fix, Inc. (NASDAQ: SFIX) reported a smaller-than-expected first-quarter Fiscal 2022 (ended October 2021) loss, with revenues beating analysts’ expectations. Meanwhile, the company provided disappointing revenue guidance for the fiscal second quarter.

Following the news, shares of the online personal styling service in the United States and the United Kingdom plunged 17.9% in Tuesday’s extended trading session after closing 4.6% higher on the day.

Results in Detail 

Stitch Fix incurred a loss of $0.02 per share, much lower than the expected loss of $0.14 per share estimated by analysts. The company reported earnings of $0.09 per share in the same quarter last year. 

Net revenue of $581.2 million surpassed analysts’ expectations of $570.95 million and surged 19% year-over-year. Results reflected continued momentum in the Womens’ and Kids’ segments, as well as in the U.K., where revenue almost doubled.

During the quarter, the company recorded 4,180,000 active clients, up 11% year-over-year. Additionally, net revenue per active client was $524, up 12%.

Adjusted EBITDA increased significantly on a year-over-year basis to $38.2 million from $6.9 million.

Gross margin was 47% in the quarter, up 200 basis points year-over-year, reflecting an all-time high on the back of improved product margins and shipping cost optimizations. (See Stitch Fix stock charts)

CEO Comments 

Following the encouraging results, the CEO of Stitch Fix, Elizabeth Spaulding, commented, ” Our revenue per active client topped $500 for the second quarter in a row, reaching a record $524 across our nearly 4.2 million clients. These quarterly results reflect a strong performance in our business from both Fix and Freestyle.”

“With the launch of Stitch Fix Freestyle we are expanding and broadening our offering, and we are excited to continue to enhance the experience for clients through the introduction of new product features and expanded merchandise selections, increasing the number of purchase occasions we serve,” Spaulding added.


For the second quarter of Fiscal 2022, the company projects revenue in the range of $505 million to $520 million, versus the consensus estimate of $584.7 million. Adjusted EBITDA is expected to land between negative $5 million and positive $5 million.

Wall Street’s Take

Overall, the stock has a Hold consensus rating based on 4 Buys, 8 Holds, and 2 Sells. The average Stitch Fix price target of $43.43 implies 73.93% upside potential to current levels. Shares have fallen 50% over the past year.

Website Traffic  

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings, the world’s biggest website usage monitoring service, offers insight into Stitch Fix’s performance. According to the tool, the Stitch Fix website recorded an 8.4% monthly decline year-over-year in global visits in November. website traffic decline YOY

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