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Stitch Fix Inc stock drops after quarterly sales miss expectations

Katrina Lake, Stich Fix founder and chief executive, described the numbers as “strong results", nonetheless the headline number was less than expected
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The stock dropped ahead of the open

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.

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