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Stitch Fix Inc (SFIX) Shares Fall on Q2 Earnings Miss

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Stitch Fix Inc (NASDAQ: SFIX ) reported its latest quarterly earnings results, which missed expectations.

Source: Wikipedia

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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