Stitch Fix Inc (NASDAQ: SFIX ) reported its latest quarterly earnings results, which missed expectations.
The online subscription and personal shopping service's profit missed the mark during its second quarter as adjusted earnings came in at 2 cents per share, below analysts' expectations of 6 cents per share. When including a one-time benefit linked to changes in the U.S. tax code, the company earned 7 cents per share.
Revenue came in at $295 million for Stitch Fix as it reaches the halfway point of fiscal 2018, which marked a 24% gain compared to the year-ago quarter. The Wall Street consensus estimate called for sales of $292 million, while the company's active client base grew 31% to 2.5 million.
"This quarter also marked the fourth consecutive quarter that we grew net revenue in the range of 25% year-over-year," said Stitch Fix CEO Katrina Lake in prepared remarks. "In addition to strong momentum across our men's and women's categories, we're excited about the potential of Extras, a new capability that allows us to serve more of our client's wardrobe, while increasing incremental revenue."
Despite another quarter of year-over-year revenue growth, Stitch Fix could struggle moving forward as a report from The Information revealed that customers spend less in their second year of using a styling service compared to the first year. Plus, newer users have been spending less overall.
SFIX stock fell about 3.1% after the bell Monday on the earnings miss.
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