2023-03-07 16:22:09 ET
Shares of Stitch Fix ( NASDAQ: SFIX ) slipped in Tuesday’s extended session after the company posted a wider than expected quarterly loss.
The San Francisco-based fashion company posted a $0.58 per share loss for its fiscal second quarter, far wider than the 0.33 per share loss anticipated. Additionally, a 20% drop in revenue from the prior year quarter to $412.1M came up narrowly short of the $412.94M consensus. A total active client count of 3.57M at the close of Q2 reflected a decrease of 445,000, or 11%, from the prior year quarter.
“Looking forward, we will continue to invest in the advanced data science and machine learning capabilities combined with personalized styling expertise that have set us apart for more than a decade,” Interim CEO Katrina Lake commented. “This strategic re-focusing on our styling-first model will deliver clarity to the client experience and drive efficiency in our marketing spend.”
For Q3, the company expects net revenue to range from $385M to $395M, suggesting downside to the $394.91M consensus. Management forecast adjusted EBITDA between negative $5M and positive $5M.
Elsewhere, the company announced that CFO Dan Jedda will step down, effective April 3.
Shares of Stitch Fix ( SFIX ) fell 4.43% shortly after the earnings announcement .
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Stitch Fix stock slides on widening losses, client attrition