Stitch Fix Inc (NASDAQ:SFIX) shares are trading lower by 22.0% at $8.59 after the company issued third-quarter sales guidance below analyst estimates.
Stitch Fix reported quarterly losses of 28 cents per share which beat the analyst consensus estimate of a loss of 29 cents. Stitch Fix also reported quarterly sales of $516.70 million which beat the analyst consensus estimate of $515.12 million. This sales figure represents a 2.5% increase over sales of $504.09 million the same period last year.
Stitch Fix sees third-quarter net revenue of $485-$500 million, representing a midpoint below the analyst consensus estimate of $560.54 million.
"In Q2, we delivered $517 million in net revenue, reflecting 3% year-over-year growth. Our revenue per active client topped $500 for the third quarter in a row, reaching a record $549, an increase of 18% from the same time last year as a result of higher average order values in our Fix business and the incrementality Freestyle provides to our existing clients," said Elizabeth Spaulding, CEO of Stitch Fix.
"While Freestyle revenue grew 29% year on year in the second quarter, we continue to experience challenges with onboarding and conversion of clients, which are not where we want them to be. We remain confident in our long-term strategy, and are resolutely focused on building and enhancing the overall client experience for Fix and Freestyle with an emphasis on growing active clients."
Stitch Fix offers personal style service for men and women.
Stitch Fix has a 52-week high of $75.78 and a 52-week low of $8.87.
