What's Going On With Stitch Fix Shares Wednesday?
Portfolio Pulse from Dylan Berman
Stitch Fix shares fell 36% after reporting a larger-than-expected Q4 loss of 29 cents per share, missing the estimated loss of 19 cents. Revenue slightly beat expectations at $319.6 million but decreased 12.4% year-over-year. The company also reported a 19.6% drop in active clients. Analysts adjusted price targets following the earnings report.
September 25, 2024 | 3:29 pm
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NEGATIVE IMPACT
Stitch Fix reported a Q4 loss of 29 cents per share, missing estimates, and a 12.4% YoY revenue decline. Active clients fell 19.6%. Shares dropped 36% as analysts adjusted price targets.
The significant miss on EPS and the decline in active clients are critical factors leading to the sharp drop in Stitch Fix's stock price. The revenue beat was overshadowed by the overall negative financial performance and analyst downgrades.
CONFIDENCE 100
IMPORTANCE 90
RELEVANCE 100