© Reuters. Stitch Fix (SFIX) shares drop 6.5% on disappointing guidance
Stitch Fix (NASDAQ:) shares fell 6.5% in early Tuesday trade after the company reported worse-than-expected profit figures for its fourth fiscal quarter.
Stitch Fix reported a of 24 cents, worse than the expected loss per share of 21 cents. The company’s revenue for the quarter was $375.8 million, slightly exceeding the consensus estimate of $371.2 million.
“Our current business results are not indicative of what I believe this Company can deliver, and I am committed to realizing the full potential of Stitch Fix and driving long-term, profitable growth,” said Chief Executive Officer, Matt Baer.
Looking ahead, Stitch Fix anticipates Q1 2024 revenue to be in the range of $355-365M, compared to the consensus estimate of $402M. For the full fiscal year 2024, Stitch Fix projects revenue in the range of $1.3-1.37B, falling short of the consensus estimate of $1.63B.
BMO analysts commented:
“We continue to believe the burden of proof lies on execution, with the path to revenue stabilization and profitability key milestones ahead.”
SFIX shares were down 2% YTD through Monday’s close.