Personalized clothing company Stitch Fix (NASDAQ:SFIX) will be announcing earnings results tomorrow after market close. Here’s what to expect.
Stitch Fix beat analysts’ revenue expectations by 4.4% last quarter, reporting revenues of $312.1 million, down 5.5% year on year. It was a very strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EPS estimates. It reported 2.37 million active clients, down 15.5% year on year.
Is Stitch Fix a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Stitch Fix’s revenue to decline 2.5% year on year to $314.6 million, improving from the 15.8% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.11 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Stitch Fix has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Stitch Fix’s peers in the apparel and accessories segment, some have already reported their Q1 results, giving us a hint as to what we can expect. ThredUp delivered year-on-year revenue growth of 10.5%, beating analysts’ expectations by 4.4%, and Figs reported revenues up 4.7%, topping estimates by 4.8%. ThredUp traded up 48.1% following the results while Figs was down 1.7%.
Read our full analysis of ThredUp’s results here and Figs’s results here.
Investors in the apparel and accessories segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Stitch Fix is up 13% during the same time and is heading into earnings with an average analyst price target of $4.70 (compared to the current share price of $4.62).
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