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Stitch Fix (NASDAQ:SFIX) shares were trading more than 15% lower after-hours following the reported Q3 results and confirmed workforce reduction plan.
Q3 EPS of ($0.72) came in worse than the consensus estimate of ($0.55). Revenue declined 8% year-over-year to $494.9 million, compared to the consensus estimate of $493.26 million.
Active clients declined 5% year-over-year to 3,907,000, while net revenue per active client (RPAC) increased 15% year-over-year to $553.
The company announced its decision to reduce approximately 15% of its salaried workforce, which represents approximately 4% of roles in total. As a result of these layoffs and other changes, the company anticipates annual cost savings in the range of $40-$60 million in 2023. It also expects to incur restructuring and other one-time charges in the range of $15-$20 million, which will be recognized in Q4/22.
Q4 revenue is expected to be in the range of $485 – $495 million, compared to the consensus estimate of $495 million.
Shares of Stitch Fix were down 59% year-to-date into the earnings results.
