Stitch Fix Inc (NASDAQ:SFIX) stock dropped more than 5% ahead of Tuesday’s open in New York after the personal shopping app maker posted results below expectations.
Net income for the second quarter amounted to US$3.6mln, equating to 2 US cents per share, on US$295.9mln of revenue.
Active clients rose by 31% year-on-year
Wall Street consensus was pitched at 6 US cents per share on US$291mln of revenue, so naturally the market was disappointed.
Looking to the current period, Stitch Fix said it is expecting to generate US$300mln to US$310mln of sales, and the full year revenue figure is pitched at US$1.19bn to US$1.22bn.
Katrina Lake, Stitch Fix founder and chief executive, described the numbers as “strong results”.
“We grew our active clients to 2.5 million, an increase of 588,000 and 31% year-over-year. We grew net revenue to $295.9 million, representing 24% year-over-year growth,” Lake said.
“This quarter also marked the fourth consecutive quarter that we grew net revenue in the range of 25% year-over-year.
“In addition to strong momentum across our men’s and women’s categories, we’re excited about the potential of Extras, a new capability that allows us to serve more of our client’s wardrobe, while increasing incremental revenue.”
Stitch Fix shares were down US$1.32 or 5.47% changing hands at US$22.80 before Tuesday’s open.