Stitch Fix Inc (SFIX)

Shares of Stitch Fix Inc (SFIX) dropped by 3.36% from $3.87 to $3.74 in the trading on Wednesday, December 6, 2023. The reason why SFIX is down today is due to Q3 earning results and challenges for the company in the future.

• Q1 Fiscal 2024 Results: Stitch Fix reported an adjusted loss of 22 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 23 cents. The loss also improved significantly from a loss of 46 cents per share reported in the year-ago quarter. The company recorded net revenues of $364.8 million, surpassing the Zacks Consensus Estimate of $362 million. However, revenuedeclined 18%** compared to the year-ago quarter due to lower net active clients.
• Margins and Costs: Despite the decline in revenues, the gross margin expanded by 140 basis points year over year to 43.6%. Cost of goods sold and selling, general, and administrative expenses both decreased from the prior-year period, contributing to improved margins. Stitch Fix reported an adjusted EBITDA of $8.6 million for the quarter, compared to an adjusted EBITDA loss of $1.7 million in the year-ago fiscal quarter.
• Outlook: For the second quarter of fiscal 2024, Stitch Fix projected net revenues of $325-$335 million, indicating a 16-19% decline from the year-ago fiscal quarter. Management cited challenges related to the tough macroeconomic backdrop for this decline. The company aims to improve gross margins with better product margins, transportation efficiency, and inventory efficiency. For fiscal 2024, SFIX expects net revenues of $1.30-$1.37 billion, representing a 14-18% decline from the prior fiscal year.

Shares of Stitch Fix, Inc. (SFIX) dropped by 9.42% from $3.61 to $3.27 in the trading on Monday, November 6, 2023. The reason why SFIX down is due to the announcement of Tony Bacos as the company's new Chief Product and Technology Officer. In this role, Bacos aims to enhance the client experience, utilizing data science and stylist expertise to foster deeper connections, personalized experiences, and business growth. The change in leadership and market sentiment contributed to the stock's drop.