Stitch Fix (SFIX, $20.06) shares falter after-hours, after beating fiscal Q4 results but offering softer guidance on Q1
Shares of Stitch Fix slumped by as much as -12%after-hours, following the company’s latest quarterly earnings release. Although the company's quarterly results surpassed estimates, its softer forecast on future quarter hurt the stock price.
The online personal styling service’s fiscal fourth quarter earnings came in at 7 cents per share, beating analysts’ expectations of 4 cents a share.
Revenue surged +36% year-over-year to $432.1 million, which is slightly higher than the $432 million expected.
Stitch Fix’s active client base grew +18% year over year, to 3.2 million people - about in-line with the 3.23 million analysts were expecting (based on FactSet poll).
However, what probably led to its shares declining was its indication of a “softer” outlook for the first quarter of fiscal 2020. For the first quarter, Stitch Fix is expecting sales to range between $438 million and $442 million – below the Street forecast of $451 million. Stitch Fix is expecting a softer growth for the first quarter compared to the full-year growth, citing their successful summer products’ lower average unit retails and average order values, coupled with less marketing spend in late Q4 ’19 leading to fewer clients at the start of Q1 ’20.
The company predicts that annual sales would range between $1.9 billion and $1.93 billion, while analysts have been expecting $1.91 billion.
SFIX's Stochastic Oscillator sits in oversold zone for 3 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
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Notable companies
The most notable companies in this group are TJX Companies (NYSE:TJX), lululemon athletica (NASDAQ:LULU), Gap (The) (NYSE:GPS), Abercrombie & Fitch Co (NYSE:ANF), Foot Locker (NYSE:FL), Guess (NYSE:GES), Stitch Fix (NASDAQ:SFIX).
Industry description
Companies in the apparel and/or footwear retail industry sell clothing, accessories and footwear, for different age groups and genders. The industry’s product categories could range from basics, such as underwear, to luxury items. Some retailers source items from wholesalers or an apparel brand to sell in their stores; some others are licensed to make and market their own retail goods under particular brands. Several companies outsource production of clothing to developing/emerging economies where labor costs are relatively inexpensive. Apparel retail is often influenced by fashion trends, and many companies feel the need to adapt to what’s “in vogue” to retain customers and attract new ones. A major disruption in this industry has been the burgeoning trend in digital shopping – to compete with rapidly growing e-commerce, even traditional retail players are upping the ante on their online platforms. Much of the products’ performance in apparel/footwear retail is cyclical, i.e., economic boom times encourage consumer spending, while recessions induce thriftiness among people. Some large-cap U.S. apparel/footwear retail companies include TJX Companies Inc., Ross Stores, Inc., Lululemon Athletica Inc. and Burlington Stores, Inc.
Market Cap
The average market capitalization across the Apparel/Footwear Retail Industry is 12.67B. The market cap for tickers in the group ranges from 256K to 119.4B. IDEXY holds the highest valuation in this group at 119.4B. The lowest valued company is DESTQ at 256K.
High and low price notable news
The average weekly price growth across all stocks in the Apparel/Footwear Retail Industry was 1%. For the same Industry, the average monthly price growth was 2%, and the average quarterly price growth was 5%. BZTAF experienced the highest price growth at 35%, while DBGI experienced the biggest fall at -19%.
Volume
The average weekly volume growth across all stocks in the Apparel/Footwear Retail Industry was -7%. For the same stocks of the Industry, the average monthly volume growth was 14% and the average quarterly volume growth was 53%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 53
P/E Growth Rating: 46
Price Growth Rating: 55
SMR Rating: 65
Profit Risk Rating: 73
Seasonality Score: 7 (-100 ... +100)