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Stitch Fix Shares Soar as the Styling Service Ups Its Outlook

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Scarosso Leandra leather loafers Made in Italy The origin of the goods may vary from batch to batch. Please refer to the actual product. Highlights beige calf suede tassel detail slip-on style almond toe branded leather insole rubber sole Composition Sole: Rubber Lining: Calf Leather Outer: Calf Suede The composition information is subject to the actual product. The product composition details of the spliced material will be split and displayed. Product IDs FARFETCH ID: 23516436 Brand style ID: LEANDRA

Final SalePhilipp Pleinrhinestone-embellished cotton T-shirtHighlightswhitecottoncrew neckrhinestone embellishmentlogo embellishmentshort sleevesstraight hemCompositionCottonThe composition information is subject to the actual product. The product composition details of the spliced material will be split and displayed.Washing instructionsRead Manufacturer GuidelinesThe washing method is subject to the commercial washing standardProduct IDsFARFETCH ID: 22222848Brand style ID: PADCMTK7044PJY002N

It was a gloomy day on Wall Street with the S&P 500 entering correction territory, but digital styling service Stitch Fix Inc. was a ray of light.  Shares of Stitch Fix jumped 19.6 percent to $5.06 in after-hours trading on Tuesday on the company’s fiscal second-quarter report, which showed smaller losses, better-than-expected sales and a stronger outlook.  Net losses narrowed to $6.5 million from $35.5 million a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization tallied $15.9 million with a margin of 5.1 percent. Related Articles Financial Stitch Fix Stock Shoots Up as Losses Narrow Technology Stitch Fix Still On the Mend as Mixed Q4 Rattles Wall Street Revenues for the quarter ended Feb. 1 slipped 5.5 percent to $312.1 million — better than the $298 million in sales analysts forecast, according to Yahoo Finance. The top line held up better than the company’s active client count, which decreased 15.5 percent from a year earlier to $2.4 million. That put revenues per active client at $537 in the quarter, a gain of 4.3 percent from a year earlier and a step in the right direction for the company, which is in the midst of a turnaround.  Matt Baer, chief executive officer of Stitch Fix, said: “Our clients are responding to the improvements we’ve made to our experience, including the increased newness in our assortment, expanded Fix flexibility, and investments in stronger client-stylist relationships. We are encouraged by our progress and remain focused on successfully executing our strategy so we can realize our vision to be the most client-centric and personalized shopping experience.” Accordingly, Stitch Fix upped its outlook for the full fiscal year.  It now expects adjusted EBITDA of $40 million to $47 million, above the $25 million to $36 million forecast in December. And revenues are now slated to hit $1.225 billion to $1.24 billion, instead of the $1.14 billion to $1.18 billion previously projected.  Stitch Fix ended the quarter with $229.8 million of cash on hand and no debt, giving the company some extra to maneuver in what has rapidly become a tough climate for fashion retailers. 

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