Stitch Fix Stock Falls On Worse-Than-Expected Q2 Results, Guidance Below Estimates
Portfolio Pulse from Erica Kollmann
Stitch Fix, Inc. (NASDAQ:SFIX) reported Q2 financial results with losses of 30 cents per share, missing the analyst consensus of 20 cents per share losses. Quarterly sales were $330.4 million, below the expected $330.85 million, marking a 19.83% decrease from the previous year. Active clients decreased by 6% quarter-over-quarter and 17% year-over-year. The company's Q3 revenue outlook is between $300 million and $310 million, below the $322.29 million estimate, with fiscal year 2024 revenue expected to be between $1.29 billion and $1.32 billion, under the $1.35 billion consensus. Stitch Fix shares fell 13.7% after-hours to $2.83.

March 04, 2024 | 9:44 pm
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NEGATIVE IMPACT
Stitch Fix reported worse-than-expected Q2 results with a significant decrease in sales and active clients, alongside a disappointing revenue outlook for Q3 and FY2024.
The reported losses and missed sales estimates, combined with a decline in active clients and a disappointing revenue outlook, are likely to negatively impact investor sentiment and stock price in the short term.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100