(RTTNews.com) - Growing active clients propelled this online personal styling service provider to generate its fifth consecutive quarter of over 20% year-over-year top-line growth, amid continued investment in category expansions, technology talent, and marketing.
Stitch Fix Inc. ( SFIX ) reported upbeat profit for the third quarter on higher revenues, led by growing active client count. Also, the company raised its fiscal 2018 revenue guidance, above consensus.
The company's founder and CEO Katrina Lake, said, "We continue to balance growth and profitability, demonstrated by our ability to consistently deliver top-line growth of over 20% even as we invest in category expansions, technology talent, and marketing."
Also, Lake noted that its Q3 results "demonstrate continued positive momentum for Stitch Fix and the power of our unique ability to deliver personalized service at scale."
The company's third-quarter net income was $9.5 million or $0.09 per share compared to a loss of $9.6 million or $0.38 per share last year.
On a non-GAAP basis, net income totaled $9.5 million or $0.09 per share versus $3.3 million or $0.03 per share in the prior year period.
Analysts polled by Thomson Reuters expected the company to earn $0.03 per share for the quarter. Analysts' estimates typically exclude certain special items.
Net revenue increased to $316.7 million from $245.1 million generated a year ago.
The company reported active clients of 2.7 million, an increase of 30% year over year.
In The Cards For Future
For the fourth quarter, the company expects net revenue in the range of $310 million - $320 million, representing growth of 20% - 24% year-over-year. Analysts are looking for revenue of $314.18 million for the quarter.
Stitch Fix hiked its net revenue outlook for the full year to a range of $1.22 billion - $1.23 billion, representing growth of 25% - 26% year-over-year. This is an increase from a prior range of 22% - 25% growth. Seven Wall Street analysts have a consensus revenue estimate of $1.21 billion for 2018.
Stitch Fix Kids
The company remains focused on expanding its total addressable market and announced the upcoming launch of Stitch Fix Kids. The company said Stitch Fix Kids will offer unique, affordable clothing
â€"in sizes 2T-14â€"across a diverse range of style aesthetics.
Lake stated, "Our goal is to provide unique, affordable kids clothing in a wide range of styles, giving our littlest clients the freedom to express themselves in clothing that they love and feel great wearing."
Read the original article on RTTNews (http://www.rttnews.com/2903252/stitch-fix-a-must-watch-stock.aspx)
For comments and feedback: contact firstname.lastname@example.org