Stitch Fix stock soared after the online-focused apparel firm reported a surprise quarterly profit.
The firm, which uses human stylists and artificial intelligence to match customers with compatible outfits, reported fiscal fourth-quarter earnings Tuesday of 19 cents a share. Analysts had penciled in a net loss of 12 cents a share, according to FactSet. Sales of $571.2 million crushed estimates at $547.8 million.
Stitch Fix stock (ticker: SFIX) jumped 12% to $39.77 in premarket trading Wednesday. Shares closed down 2.5% to $35.46 in regular trading Tuesday—down about 40% year-to-date but up 13% in the trailing-twelve-month period.
The broader return to the office has helped traditional apparel retailers broadly, but Stitch Fix shares sold off in 2021. If Tuesday’s extended trading gains hold, shares would still be down 32% year-to-date. The stock also spiked after reporting fiscal third-quarter results in June but that’s been its peak in the past six months.
CEO Elizabeth Spaulding, who took over in that role in August, said in the earnings release that Stitch Fix Freestyle—its new direct purchase option, as opposed to its traditional monthly subscription—has helped the firm increase its addressable market significantly.
“These results reflect strong performance across our business, in Women’s, Kids and the UK. Today, we are proud to serve almost 4.2 million clients,” Spaulding said.
The company expects fiscal first-quarter revenue between $560 million and $575 million, with full-fiscal-year 2022 revenue up at least 15% year-over-year.
Write to Connor Smith at [email protected]
