Stitch Fix (SFIX, $26.98) soars +20%, on fiscal Q2 earnings beat and strong Q3 guidance
Stitch Fix soared in after-hours trading Monday, on strong fiscal second quarter performance.
The online subscription fashion & styling service company reported earnings of 12 cents per share for the quarter, surpassing Wall Street estimates of 5 cents a share.
The company's quarterly revenue came in at $370 million, beating Street expectation of $365 million. (Analysts estimates are based on Refinitiv data). Net revenue was +25% higher from the year-ago quarter. Stitch Fix founder and CEO Katrina Lake emphasized that the firm delivered growth of over +20% for the six consecutive quarters since the company went public.
The number of active clients of Stitch Fix grew +18% year-over-year to 2.96 million, edging past estimates of 2.95 million.
Looking ahead, Stitch Fix expects its third-quarter revenue to range between $388 million and $398 million, higher than the $384 million forecast by Refinitiv. For 2019, the company projects revenues between $1.53 billion and $1.56 billion, exceeding analysts’ estimates of $1.51 billion.
Stitch Fix shares jumped as much as +20% during extended trading on Monday.
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.
Show more
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)