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Here's What to Expect from Stitch Fix (SFIX) Earnings

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Shares of Stitch Fix, Inc. (SFIX - Free Report) plummeted roughly 8% Friday as part of the larger market downturn, just one trading day before it reports its quarterly earnings results. The online personal styling firm’s stock has also tanked far worse than the broader retail industry over the last three months, which likely means investors are nervous about the newly public company’s future. 

Overview

Stitch Fix, which currently boasts 2.7 million clients in the U.S., went public at $15 a share in November 2017. The company was founded in 2011 and quickly grew as the likes of Macy’s (M - Free Report) and Nordstrom (JWN - Free Report) felt the impact of the e-commerce-based consumer age that Amazon (AMZN - Free Report) would soon control. Shares of SFIX soared at one point as investors dove into the stock along with the likes of Lululemon (LULU - Free Report) , Canada Goose (GOOS - Free Report) , and other trendy retail stocks.

Stitch Fix’s fiscal fourth quarter revenues jumped 23% to $318.3 million, spurred by a 25% expansion of its active client base. The company also swung from an adjusted quarterly loss of $0.18 per share in the year-ago quarter to post earnings of $0.18 a share last quarter. Plus, the company’s full-year revenues surged 26% to $1.2 billion. 

With that said, shares of SFIX fell 8% to $26.36 per share during regular trading Friday. This marked a roughly 50% downturn from its 52-week high of $52.44 per share.

 

Outlook

Stitch Fix’s fiscal first quarter revenues are projected to reach $357.8 million, based on our current Zacks Consensus Estimate. This would mark a roughly 12% sequential jump from the company’s fiscal fourth quarter revenues. Meanwhile, at the bottom end of the income statement, Stitch Fix’s quarterly earnings are expected to come in it at $0.03 per share.

Investors should also note that the company’s current full-year 2019 earnings are projected to come in at $0.13 per share, which would mark a decline from fiscal 2018. With that said, Stitch Fix is currently a Zacks Rank #3 (Hold) that has seen zero earnings estimate revision activity recently.

Looking ahead, the company plans to expand into the UK by the end of its fiscal 2019. Stitch Fix is scheduled to release its fiscal Q1 financial results after the market closes on Monday, December 10.

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