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Stitch Fix Inc. shares plunged after hours Tuesday after issuing guidance below expectations.
Stitch Fix
SFIX,
reported an increase in active clients, better-than-expected fiscal first-quarter revenue and a narrower loss, but its shares sank about 20% in extended trading after rising more than 4.6% in the regular session to close at $24.97.
The company, which sells clothing through subscriptions and more, reported a first-quarter net loss of $1.8 million, or 2 cents a share, compared with net income of $9.5 million, or 9 cents a share, in the year-ago period. Adjusted Ebitda was $38.2 million. Revenue rose to $581.2 million from $490.4 million in the year-ago quarter.
Analysts surveyed by FactSet had forecast a net loss of 14 cents a share on revenue of $570.8 million, and adjusted Ebitda of $17.5 million.
Stitch Fix expects second-quarter revenue of $505 million to $520 million, and adjusted Ebitda of between negative-$5 million and $5 million. Analysts had forecast a loss of 24 cents a share on revenue of $585 million, and adjusted Ebitda of $5.5 million.
The company also lowered its full-year 2022 guidance — its fiscal year ends July 30 — saying it expects revenue growth at a high single-digit rate and adjusted Ebitda margin to be between 1% and 2%.
Shares of Stitch Fix have declined nearly 57% year to date, while the S&P 500 Index
SPX,
has risen about 25% so far this year.
