Personalized clothing company Stitch Fix (NASDAQ:SFIX) will be reporting earnings today after market hours. Here’s what to expect.
Last quarter Stitch Fix reported revenues of $364.8 million, down 19.9% year on year, in line with analyst expectations. It was a weaker quarter for the company, with full-year revenue guidance missing analysts’ expectations and a miss of analysts’ active clients estimates.
Is Stitch Fix buy or sell heading into the earnings? Read our full analysis here, it’s free.
This quarter analysts are expecting Stitch Fix’s revenue to decline 19.4% year on year to $332.3 million, a further deceleration on the 20.2% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.19 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St’s revenue estimates four times over the last two years.
Looking at Stitch Fix’s peers in the apparel, accessories and luxury goods segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Tapestry delivered top-line growth of 2.9% year on year, beating analyst estimates by 1.4% and Figs reported revenues up 0% year on year, missing analyst estimates by 2.8%. Tapestry traded up 2.6% on the results, Figs was flat on the results.
Read our full analysis of Tapestry’s results here and Figs’s results here.
There has been positive sentiment among investors in the apparel, accessories and luxury goods segment, with the stocks up on average 2.5% over the last month. Stitch Fix is up 2.5% during the same time, and is heading into the earnings with analyst price target of $4, compared to share price of $3.28.
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