Personalized clothing company Stitch Fix (NASDAQ: SFIX) will be reporting earnings this Wednesday after market close. Here’s what to expect.
Stitch Fix beat analysts’ revenue expectations by 3.3% last quarter, reporting revenues of $325 million, flat year on year. It was a strong quarter for the company, with a beat of analysts’ EPS and adjusted operating income estimates. It reported 2.35 million active clients, down 10.6% year on year.
Is Stitch Fix a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Stitch Fix’s revenue to decline 4.9% year on year to $304 million, improving from the 12.4% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.10 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Stitch Fix has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Stitch Fix’s peers in the apparel and accessories segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Guess delivered year-on-year revenue growth of 5.5%, beating analysts’ expectations by 1%, and PVH reported revenues up 4.5%, topping estimates by 2.3%. Guess’s stock price was unchanged after the resultsand PVH’s price followed a similar reaction.
Read our full analysis of Guess’s results here and PVH’s results here.
There has been positive sentiment among investors in the apparel and accessories segment, with share prices up 2.1% on average over the last month. Stitch Fix is up 9.8% during the same time and is heading into earnings with an average analyst price target of $4.88 (compared to the current share price of $5.59).
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