The clothing subscription service reported earnings of $0.10 per share compared with $0.04 per share in the previous first quarter, crushing the $0.03 per share analysts were expecting.
Shares of Stitch Fix dipped nearly 20% to $20.84 in Tuesday pre-market trading.
Quarterly revenue totaled $366.2 million compared with $295.6 million a year ago, surpassing consensus estimates of $358 million.
Stitch Fix operates as a subscription service meets personal shopper, sending a monthly box of personalized clothing for men, women and children.
The company added new brands this quarter, including Michael Kors, Madewell, The North Face, Bonobos and Converse, and expanded its size offerings for men.
Active clients for the quarter rose 22% to 2.9 million, but fell short of Wall Street expectations of 2.95 million.
The holiday season will take place during Stitch Fix’s second fiscal quarter, but the company said it isn’t expecting a holiday rush.
Stitch Fix noted that its historically seen lower quarter-over-quarter net revenue growth in its second quarter due to slower active client growth.
“We believe this is reflective of our clients’ focus on buying gifts for others rather than themselves. We view our lack of seasonality as a positive; it makes staffing and planning easier and we don’t need to compete on advertising spend for consumers’ attention,” said Stitch Fix in a letter to shareholders.
For the second quarter, the company expects revenue of $360 million to $368 million while analysts expected around $363 million.
Contact Lenore Fedow at [email protected]