Katrina Lake, founder and CEO of Stitch Fix Inc.
Patrick T. Falan | Bloomberg | Getty Images
Shares of Stitch Fix rose on Monday after the company reported a surprising 10% profit and revenue growth from a year earlier.
Its stock after hours trading. Than% remained above.
Oct. In the first quarter of its fiscal year ended on Ended1, StitchFix reported earnings of c 90 cents per share on earnings of 90 90.04 million, surpassing estimates of a loss of 20 cents per share on earnings of ૨ 3.5 million, refinitive According to the data.
Its active customer base has grown to approximately 8.8 million, up 10.2% from a year earlier. Stitch Fix defines active customers who have purchased an item directly from its website in the 52 weeks prior to the last day of the quarter called “Fix”.
“While the apparel industry is currently contracting, we will increase the relevance of our model of personal search and convenience so we expect to participate and run new client sign-ups,” the company said in a letter to shareholders.
During the coronavirus epidemic, dozens of retailers, including J.Crew, Brooks Brothers, and Francisca, filed for bankruptcy, and thousands of stores closed. Fewer consumers buy apparel to buy for sale. Many do not need to be equipped for work and other social gatherings, which is very limited by this year’s health crisis. At the same time, more sales are changing shline online.
Stitch Fix said that, given its recent momentum, it expects revenue to grow between 20% and 25% in FY2021.
During the latest quarter, it said it has delivered a record success rate across its business, measuring the percentage of purchases made by users of a given item styling service. That means its algorithm-based recommendation engine, which helps create “fixes” for customers, is getting smarter, and fewer items are being returned.
Regardless of the earnings report, it announced on Wednesday that it would effectively appoint Dan Jeddah, a former VP at Amazon and CFO of Digital Video.
As of Monday’s close to the market, StitchFix shares are up nearly 40% to date, bringing its market cap to 7 7.7 billion.
Find the full earnings publication and presentation from Stitch Fix here.
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