We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Stitch Fix (SFIX) Lined Up for Q1 Earnings: What to Expect
Read MoreHide Full Article
Stitch Fix, Inc. (SFIX - Free Report) is expected to register an increase in its top line from the year-ago quarter’s reported number when it releases first-quarter fiscal 2022 earnings on Dec 7, after market close. The Zacks Consensus Estimate for quarterly revenues currently stands at $572.3 million, suggesting an increase of about 17% from the year-ago quarter’s tally.
However, the Zacks Consensus Estimate for the fiscal first quarter’s loss is pegged at 13 cents. The year-earlier quarter saw earnings per share of 9 cents. The consensus estimate has been stable over the past 30 days.
A glimpse of this online personal-styling service provider’s performance shows that it delivered an earnings surprise of 107.8% in the trailing four quarters, on average.
Factors at Play
Continued growth in the active client base is a significant driver for Stitch Fix. SFIX has been experiencing strength across both fixed and direct buy offerings for a while. Management rolled out the Freestyle drive that offers quite a distinct shopping experience. This platform allows customers to discover and buy curated items according to their style, preferences, fit and size. The Freestyle service caters to customer style needs across casual, workwear, occasion, active, athleisure, loungewear, sleepwear and more. In brief, Stitch Fix strongly focuses on expanding its digital capabilities and personalized shopping to offer clients the best-in-class service.
Stitch Fix is constantly leveraging product innovation, evolving assortments, and using personalized experience to gain more clients. All these efforts coupled with immense strength across Women’s Fix, outsized growth in Kids and the U.K., and advancement in the Freestyle channel are most likely to have fueled the top-line performance in the to-be-reported quarter. The performance in the fiscal first quarter is also likely to have benefited from a continued expansion of the Fix Preview, which is enhancing clients’ experience and delivering strong results.
On its last earnings call, management had projected net revenues of $560-$575 million in the fiscal first quarter, suggesting 14-17% growth from the year-ago period’s reported figure. Stitch Fix estimated adjusted EBITDA of 15-20 million with a margin of 2.7-3.5%, indicating an increase from adjusted EBITDA of $6.9 million and a margin of 1.4% recorded in first-quarter fiscal 2021.
On the flip side, any deleverage in SG&A expenses might have affected SFIX’s bottom line in the fiscal first quarter. Stitch Fix is also steadily making investments in business operations, technology and infrastructure to boost clients’ experience. Stitch Fix has also been witnessing higher advertising spend. These factors might dampen the bottom-line results in first-quarter fiscal 2022.
What Does the Zacks Model Say?
Our proven model does not conclusively predict a beat for Stitch Fix this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Although Stitch Fix currently has a Zacks Rank #3, its Earnings ESP of 0.00% makes surprise prediction difficult.
Stocks With Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to beat on earnings this season:
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +1.72% and a Zacks Rank #2. CASY is expected to register top and bottom-line growth when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for CASY’s quarterly revenues is pegged at $3.15 billion, suggesting growth of 42.3% from the prior-year quarter’s level.
The Zacks Consensus Estimate for Casey's quarterly earnings has moved 5% up in the past seven days to $2.92 per share, suggesting a 2.7% decrease from the year-ago period’s reported number. CASY delivered an earnings beat of 26.1%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +1.37% and a Zacks Rank of 2. LULU is expected to register top and bottom-line growth when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for LULU’s quarterly revenues is pegged at $1.43 billion, suggesting growth of 28.1% from the prior-year quarter’s level.
The Zacks Consensus Estimate for lululemon’s quarterly earnings has moved a penny up in the past 30 days to $1.39 per share, suggesting a 19.8% increase from the year-ago period’s reported number. LULU delivered an earnings beat of 25.2%, on average, in the trailing four quarters.
Costco (COST - Free Report) currently has an Earnings ESP of +0.79% and a Zacks Rank of 3. It is likely to register top- and bottom-line growth when it reports first-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings has moved 1.6% north in the past 30 days to $2.59 per share, suggesting an improvement of 13.1% from the year-ago quarter’s tally.
The Zacks Consensus Estimate for Costco's quarterly revenues is pegged at $49.8 billion, suggesting growth of 15.1% from the figure reported in the prior-year quarter. COST delivered an earnings surprise of 7.7%, on average, in the trailing four quarters.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Stitch Fix (SFIX) Lined Up for Q1 Earnings: What to Expect
Stitch Fix, Inc. (SFIX - Free Report) is expected to register an increase in its top line from the year-ago quarter’s reported number when it releases first-quarter fiscal 2022 earnings on Dec 7, after market close. The Zacks Consensus Estimate for quarterly revenues currently stands at $572.3 million, suggesting an increase of about 17% from the year-ago quarter’s tally.
However, the Zacks Consensus Estimate for the fiscal first quarter’s loss is pegged at 13 cents. The year-earlier quarter saw earnings per share of 9 cents. The consensus estimate has been stable over the past 30 days.
A glimpse of this online personal-styling service provider’s performance shows that it delivered an earnings surprise of 107.8% in the trailing four quarters, on average.
Factors at Play
Continued growth in the active client base is a significant driver for Stitch Fix. SFIX has been experiencing strength across both fixed and direct buy offerings for a while. Management rolled out the Freestyle drive that offers quite a distinct shopping experience. This platform allows customers to discover and buy curated items according to their style, preferences, fit and size. The Freestyle service caters to customer style needs across casual, workwear, occasion, active, athleisure, loungewear, sleepwear and more. In brief, Stitch Fix strongly focuses on expanding its digital capabilities and personalized shopping to offer clients the best-in-class service.
Stitch Fix is constantly leveraging product innovation, evolving assortments, and using personalized experience to gain more clients. All these efforts coupled with immense strength across Women’s Fix, outsized growth in Kids and the U.K., and advancement in the Freestyle channel are most likely to have fueled the top-line performance in the to-be-reported quarter. The performance in the fiscal first quarter is also likely to have benefited from a continued expansion of the Fix Preview, which is enhancing clients’ experience and delivering strong results.
On its last earnings call, management had projected net revenues of $560-$575 million in the fiscal first quarter, suggesting 14-17% growth from the year-ago period’s reported figure. Stitch Fix estimated adjusted EBITDA of 15-20 million with a margin of 2.7-3.5%, indicating an increase from adjusted EBITDA of $6.9 million and a margin of 1.4% recorded in first-quarter fiscal 2021.
On the flip side, any deleverage in SG&A expenses might have affected SFIX’s bottom line in the fiscal first quarter. Stitch Fix is also steadily making investments in business operations, technology and infrastructure to boost clients’ experience. Stitch Fix has also been witnessing higher advertising spend. These factors might dampen the bottom-line results in first-quarter fiscal 2022.
What Does the Zacks Model Say?
Our proven model does not conclusively predict a beat for Stitch Fix this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stitch Fix, Inc. Price and EPS Surprise
Stitch Fix, Inc. price-eps-surprise | Stitch Fix, Inc. Quote
Although Stitch Fix currently has a Zacks Rank #3, its Earnings ESP of 0.00% makes surprise prediction difficult.
Stocks With Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to beat on earnings this season:
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +1.72% and a Zacks Rank #2. CASY is expected to register top and bottom-line growth when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for CASY’s quarterly revenues is pegged at $3.15 billion, suggesting growth of 42.3% from the prior-year quarter’s level.
The Zacks Consensus Estimate for Casey's quarterly earnings has moved 5% up in the past seven days to $2.92 per share, suggesting a 2.7% decrease from the year-ago period’s reported number. CASY delivered an earnings beat of 26.1%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +1.37% and a Zacks Rank of 2. LULU is expected to register top and bottom-line growth when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for LULU’s quarterly revenues is pegged at $1.43 billion, suggesting growth of 28.1% from the prior-year quarter’s level.
The Zacks Consensus Estimate for lululemon’s quarterly earnings has moved a penny up in the past 30 days to $1.39 per share, suggesting a 19.8% increase from the year-ago period’s reported number. LULU delivered an earnings beat of 25.2%, on average, in the trailing four quarters.
Costco (COST - Free Report) currently has an Earnings ESP of +0.79% and a Zacks Rank of 3. It is likely to register top- and bottom-line growth when it reports first-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings has moved 1.6% north in the past 30 days to $2.59 per share, suggesting an improvement of 13.1% from the year-ago quarter’s tally.
The Zacks Consensus Estimate for Costco's quarterly revenues is pegged at $49.8 billion, suggesting growth of 15.1% from the figure reported in the prior-year quarter. COST delivered an earnings surprise of 7.7%, on average, in the trailing four quarters.