© Reuters. Stitch Fix Misses On Q2 Earnings: Restructuring Details, Guidance Updates, The Plan For ‘Return To Growth’ And More
Benzinga – Online fashion company Stitch Fix (NASDAQ: SFIX) reported second-quarter financial results after the market close Tuesday. Here are the key highlights.
What Happened: Stitch Fix reported second-quarter revenue of $412.1 million, a 20% year-over-year decline. The revenue missed a Street estimate of $413.6 million, according to data from Benzinga Pro.
The company reported a loss of 58 cents in the second quarter, missing a Street estimate of a loss of 34 cents per share.
Stitch Fix ended the second quarter with 3,574,000 active clients, an 11% year-over-year decline.
“This quarter, we continued to execute on our plan to achieve profitability and preserve liquidity, delivering adjusted EBITDA of $3.8 million, which is at the high end of our guidance range,” Stitch Fix interim CEO Katrina Lake said.
Stitch Fix highlighted a restructuring plan during the second-quarter earnings report that it said will lower costs by $135 million for the fiscal year.
Related Link: Can Stitch Fix Sew Together An Upside Earnings Surprise Or Miss Estimates For The Fourth Quarter In A Row?
What’s Next: Stitch Fix is estimating third-quarter revenue to come in a range of $385 million to $395 million, which would be a decline of 22% to 20% year-over-year.
For the full fiscal year, Stitch Fix said it expects revenue to come in a range of $1.625 billion to $1.645 billion.
“Looking forward, we will continue to invest in the advanced data science and machine learning capabilities combined with personalized styling expertise that have set us apart for more than a decade,” Lake said.
The CEO said the company would refocus on its styling-first model to improve the client experience and help control marketing spending.
“We’re proud to have helped millions of clients find clothes that make them feel their best, and we’re confident that this path will ensure that we’re attracting long-term clients to Stitch Fix and paving the way for a return to growth.”
SFIX Price Action: Stitch Fix shares are down 4% to $4.75 in after-hours trading at the time of writing. Shares have traded between $2.63 and $12.20 over the last 52 weeks.
Read Next: Stitch Fix Plans To Slash 20% Of Salaried Jobs, CEO Steps Down
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