Stitch Fix Inc. posted fiscal first quarter earnings that beat analysts’ expectations.
For the three months ending on November 2, the online personal styling service company reported a breakeven quarter, surpassing the Street forecast of a -6 cent loss.
The company’s revenue surged +21% from the same period last year to $445 million. Active clients jumped +17% to 3.4 million. A major boost came from the launch of Stitch Fix's two new "direct buy" offerings (Shop Your Looks and Shop New Colors) that supported inventory clearance and leveraged group expenses.
For the fiscal second quarter, Stitch Fix is expecting net revenues in the range of $447 million to $455 million, and a client growth rate similar to that in the first quarter. The company has projected adjusted earnings to grow to between $10 million and $15 million.
Looking into the full-fiscal year 2020, the company expects net revenue in the range of $1.9 billion to $1.93 billion (which implies a +22.5% growth rate at the higher end of the forecast range). It predicted adjusted operating earnings of $18 million to $32 million for the year.