On March 08, Stitch Fix Inc. (SFIX) declared its financial results for fiscal Q2 2022, which ended on January 29, 2022. Moreover, the company also provided an outlook for the ongoing quarter and a revised fiscal 2022 outlook. Consequently, the stock suffered a harsh hit in the after-hours as it tumbled down.
It seems investors were expecting good things from the earnings as the stock traded in the green during the regular session. The stock increased by 4.36% in the session as an active volume of 8.31 million shares traded. At the close of the regular trading session, SFIX was trading at $11.01 per share. Following the announcement, the stock plunged down by a huge 18.89% in the after-hours. Hence the stock was trading at a price of $8.93 per share at an after-hours volume of 2.08 million.
The online personal styling service, Stitch Fix Inc. personalizes fixes of apparel and accessories. Founded in 2011, the company has a market capitalization of $1.15 billion. Currently, its 83.31 million outstanding shares stand at a year-to-date loss of 41.81%. Moreover, SFIX stock declined by a huge 77.64% last year.
SFIX’s Fiscal Q2 2022
In the fiscal Q2 2022, the company reported net revenue of $516.7 million, marking a YOY growth of 3% against the prior-year period.
Furthermore, SFIX incurred a net loss of $30.9 million in the fiscal Q2 2022. Thus, the net loss per basic and diluted share was $0.28 in the quarter.
The adjusted EBITDA was $10.1 million and RPAC was $549 in the quarter.
Additionally, active clients increased by 4% YOY to 4,019,000 in fiscal Q2 2022.
Future Outlook
For the quarter ending on April 30, 2022, the company expects net revenue between $485 and $500 million. This represents a decline of 10-7% YOY.
The expected adjusted EBITDA for the quarter in the range of $(30) – $(25) million.
In addition, SFIX lowered its fiscal 2022 revenue outlook to flat or slightly down year-over-year.
SFIX’s Upcoming Participation
On February 22, the company announced its upcoming participation in the Morgan Stanley Technology, Media & Telecom Conference. The company’s CEO Elizabeth Spaulding will participate in a fireside chat at the conference on Thursday, March 10, 2022.
Inducement Grants
On February 18, the company announced awarding restricted stock units for acquiring 125, 076 Class A common stock shares to Devin Grdinic, under the 2019 Inducement Plan. Mr. Grdinic is the company’s Vice President of Total Rewards & People Operations.
