Katrina Lake, CEO of Stitch Fix
Adam Jeffery | CNBC
Stitch Fix reported a narrower-than-expected loss during its last quarter on Monday, but the company lost analysts ’expectations in terms of revenue and outlook as customer delays and lower customer spending went up. affect sales.
Shares fell 21% in extended operations.
The subscription-style service reduced revenue forecast for the quarter and the current fiscal year, citing continued uncertainty stemming from the coronavirus pandemic and longer purchase cycles resulting from delivery problems.
This is what the company reported during the quarter ended Jan. 30 compared to what Wall Street expected, according to a survey by Refinitiv analysts:
- Loss per share: 20 cents against 22 cents expected
- Revenue: $ 504.1 million vs. $ 512.2 million projected
Stitch Fix reported a second-quarter net tax loss of $ 21 million, or 20 cents per share, below a profit of $ 11.4 million, or 11 cents per share, a year earlier. Analysts polled by Refinitiv expected a loss of 22 cents a share.
Net sales rose 12% to $ 504.1 million, below expectations of $ 512.2 million. Delays in shipping during the holiday season meant that the company was forced to work through a delay and could not record the revenue of all the boxes sent during the quarter. Stitch Fix recognizes revenue when customers check items, not when the company ships the order.
The company also said its overall holiday sales were softer than expected, as consumers went from spending money on themselves to buying gifts for others. Still, it recorded its strongest January.
For the third fiscal quarter, Stitch Fix expects net sales of $ 505 million to $ 515 million, representing 36% to 39% growth and an adjusted loss before interest, taxes, depreciation and amortization of $ 5 million. $ 9 million. Executives said February has been a “mixed bag” of delays in shipping and processing and expect the trend to continue for the rest of the third fiscal quarter.
For the full fiscal year 2021, the company now expects revenue to grow from 18% to 20%, down from its previous outlook of 20% to 25%. Wall Street forecast revenue growth of 22.6% for the fiscal year.
The company added 110,000 new active customers during the quarter for a total list of nearly 3.9 million. Stitch Fix said more active customers were added during the first half of fiscal year 2021 than during the entire previous fiscal year.
But customers spend less on average. Active customers spent $ 467 on average, 7% less than in the same period a year ago.
Stitch Fix defines active customers as people who have purchased an item directly from their website during the previous 52 weeks from the last day of the quarter.
Read the full shareholder letter here.