Online fashion retailer Stitch Fix (SFIX) reported fiscal second quarter 2019 earnings results after the market closed today. Non-GAAP EPS of 12 cents exceeded analysts’ views and revenue of $370.3 million topped both Street’s estimates and the company’s projections. Shares of Stitch Fix were up more than 15% during the extended trading hours.
Analysts estimated the company to post earnings of 5 cents per share on revenue of $364.89 million. In December 2018, the company had expected Q2 revenue to be in the range of $360 million to $368 million.Active clients grew 18% year-over-year to 3 million for the quarter ended January 26, 2019. The subscription-based styling service firm projected Q2 active client count to be relatively flat quarter-over-quarter in Q2.
“Q2 was another strong quarter for us, delivering net revenue of $370.3 million, exceeding our guidance and representing 25% year-over-year growth,” said CEO Katrina Lake.
For the fiscal year 2019, which ends on August 3, 2019, Stitch Fix lifted its revenue target to a range of $1.53 billion to $1.56 billion, representing an annual growth of 25% to 27%, buoyed by the recent top-line momentum, ongoing client demand and engagement trends. Earlier, the company had estimated revenue to be in the range of $1.49 billion to $1.53 billion.
For Q3 2019, Stitch Fix expects revenue to be $388 million and $398 million, representing a year-over-year growth of 22% to 26%.
The San Francisco-based firm has plans to introduce its personalization platform to the UK clients by Q4 2019. Stitch Fix had established local presence by hiring a U.K. team and has been investing in on-the-ground operations.
It’s worth noting that retailer J.C. Penney (JCP) withdrew its clothing subscription service that it provided to customers with its partner Bombfell. Stitch Fix faces a stiff competition from Amazon’s (AMZN) Prime Wardrodbe services that was launched in June 2018 and Nordstrom’s (JWN) Trunk Club.
Stitch Fix stock, which ended Monday’s trading session up 4.98% at $26.98, had gained 56% since the beginning of 2019 and 18% in the past 12 months period.
Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a
PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the
With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,