2023-06-06 18:25:13 ET
Stitch Fix Inc ( NASDAQ: SFIX ) climbed nearly 10% in extended hours after the online personal styling service reported better-than-expected results for its fiscal third quarter.
What else helped Stitch Fix shares?
On Tuesday, the California-based company also said it will consider exiting the United Kingdom. The stock gained because Stitch Fix revealed plans of closing its Dallas distribution centre (next year) as well.
Earlier this year, the Nasdaq-listed firm lowered its salaried headcount by 20% and shuttered its distribution centre in Salt Lake City to cut costs in the midst of a hit to sales as consumers turned more cautious in terms of spending.
Despite the after-hours price action, it may still not be too late to take a position in this stock considering Telsey Advisory Group just last week reiterated its $5.0 price objective on Stitch Fix shares that suggests another 25% upside from here.
Notable figures in Stitch Fix Q3 earnings report
- Lost $21.8 million versus the year-ago $78 million
- Per-share loss also narrowed from 72 cents to 19 cents
- Revenue jumped 20% year-on-year to $394.9 million
- Consensus was 31 cents a share loss on $389 million revenue
- Active clients declined a less than expected 11% to 3.45 million
Guidance for the fourth financial quarter
For its current financial quarter, Stitch Fix expects up to $375 million in sales versus analysts at $379 million. In the earnings press release , Founder and Interim CEO Katrina Lake said:
We continue to focus on delivering profitability and preserving cash flow; on ways to drive efficiencies and invest in core capabilities. We have the right strategy to return us to profitable growth.
Stitch Fix shares are now up 40% versus their low some three weeks ago.
The post Stitch Fix to explore exiting the U.K. after a strong Q3 appeared first on Invezz .