2023-06-06 16:25:11 ET
Stitch Fix ( NASDAQ: SFIX ) shares gained sharply in post market trading on Tuesday after topping Q3 earnings estimates.
For the reported quarter, the San Francisco-based online styling company reported a $0.19 per share loss, $0.11 narrower than anticipated. Meanwhile, a 19.9% decline in revenue year over year to $394.1M was $6.09M above the Street consensus. Active clients decreased about 11% from the prior year quarter to 3.476M and net revenue per active client declined 9% year ovr year to $502.
“We continue to focus on delivering profitability and preserving cash flow, and I’m proud of how far we’ve come. This quarter we delivered adjusted EBITDA of $10.1 million, exceeding our guidance range and significantly expanding our free cash flow,” CEO Katrina Lake said. “We continue to focus on ways to drive efficiencies across our business, while at the same time invest in the core capabilities that have set Stitch Fix apart from the beginning – personalization powered by our industry-leading data science and AI.”
Management also updated cost-saving initiatives that include reducing distribution centers from five to three and exiting the UK market. A full departure from the UK market is anticipated by the close of fiscal year 2024.
The company expects net revenue between $365M and $375M for the fourth quarter, below the Street consensus of $379.5M. Adjusted EBITDA is expected to range from $0 to $10M against a $7.8M consensus.
Shares of Stitch Fix ( SFIX ) surged about 7% after the bell on Tuesday before moderating to about a 3% gain as the extended session progressed.
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Stitch Fix stock gains after Q3 beat, updated cost-savings plan