Personalized clothing company Stitch Fix (NASDAQ: SFIX) will be reporting results this Thursday afternoon. Here’s what to look for.
Stitch Fix beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $311.2 million, down 2.6% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations. It reported 2.31 million active clients, down 7.9% year on year.
Is Stitch Fix a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Stitch Fix’s revenue to grow 5.4% year on year to $336 million, a reversal from the 12.6% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.07 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Stitch Fix has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.4% on average.
Looking at Stitch Fix’s peers in the apparel and accessories segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Figs delivered year-on-year revenue growth of 8.2%, beating analysts’ expectations by 6.4%, and ThredUp reported revenues up 33.6%, topping estimates by 5.9%. Figs traded up 13.7% following the results while ThredUp was down 7.5%.
Read our full analysis of Figs’s results here and ThredUp’s results here.
There has been positive sentiment among investors in the apparel and accessories segment, with share prices up 3.3% on average over the last month. Stitch Fix is up 4% during the same time and is heading into earnings with an average analyst price target of $5.25 (compared to the current share price of $4.37).
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