Stitch Fix, Inc. ($SFIX) Earnings (Q2 FY22)

Stitch Fix, Inc. ($SFIX) Earnings and Opinion:


Stitch Fix, Inc. ($SFIX) is a company in the Consumer Cyclical sector and operates in the Apparel Retail industry. They sell apparel, shoes, and accessories through its Website and mobile app in the United States. The company was incorporated in 2011 and is currently headquartered in San Francisco, California. The company was first publicly traded on the stock market in 2017.  

Stich Fix, Inc. ($SFIX) EPS and Revenue (Q2 FY22):

  • EPS of -$0.28 equivalent to expectations of -$0.28
  • Revenue of $516.7M beating expectations of $515.95M
  • EPS was down 40% (YOY) and Revenue was up 3% (YOY)
Stitch Fix, Inc. ($SFIX) Q2 Key Metrics and Financial Highlights:
  • Active clients increased 146,000 or 4% (YOY)
  • Net Revenue per active client of $549, 18% increase (YOY)
  • Adjusted EBITDA of $10.1M
Stitch Fix, Inc. ($SFIX) Q3 FY22 Outlook:
  • Net Revenue of $485-500M
  • Adjusted EBITDA between -$30M and -$25M
Opinion:
Stitch Fix, Inc. is currently declining by around 18% after reporting earnings after the markets closed today. Stitch Fix didn't have to bad or earnings for this quarter. However, I think the outlook for the upcoming quarter caused the stock to sink. I liked that the active clients increased, as well as the revenue per client as well. Revenue did not show huge signs of growth which is also a turnoff for investors. EPS was down by a whopping 40%, which is also not a good sign for investors. This stock was a recommendation by Motley Fool a while back. It has down nothing but sank since then. I think this company had a lot of hype around it, but fell to the ground as the business hasn't performed to investors expectations. This is a stock to stay away from in my opinion, unless you see something in it that I don't.


*Information from Stitch Fix, Yahoo Finance, and Zacks

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