Stitch Fix bests estimates as revenue soars 25% on new products, more clients
US online personal styling service Stitch Fix reported another strong quarter on Monday with net revenue up 25 percent to $295.9 million, compared with $237.8 million a year ago, beating analyst estimates.
During the second quarter ended January 27, 2018, fiscal net income hit $3.6 million, or 2 cents a share, compared with net income of $233,000, in the same period a year-ago.
Stitch Fix said it also witnessed solid growth in its subscription base as the number of active clients climbed to 2.5 million, an increase of 588,000 and 31 percent year-over-year.
Speaking of the results, Stitch Fix founder and CEO, Katrina Lake highlighted the quarter as the fourth consecutive one with growth around 25 percent, along with the company’s latest category baptised 'Extras', which includes shapewear, underwear, tights, bralettes, bras and socks.
“This quarter also marked the fourth consecutive quarter that we grew net revenue in the range of 25 percent year-over-year. In addition to strong momentum across our men’s and women’s categories, we’re excited about the potential of Extras, a new capability that allows us to serve more of our client’s wardrobe, while increasing incremental revenue.”
Like a subscription-box service, Stitch Fix offers a personalised styling service that allows customers to receive a curated selection of five items. Customers can then choose to keep or return items and receive a reimbursement, not including a $20 shipping fee.
The company went public in November at $15 a share. This is its second financial announcement the start-up firm has made since its $120 million IPO debut.
In a separate statement, Stitch Fix also announced that Kirsten Lynch will be joining the company's board of directors. Lynch is the chief marketing officer and executive vice president at Vail Resorts, Inc. where she leads all marketing, sales and communications efforts for the global mountain resort company.
For the current quarter, the company sees revenue in a range of $300 million to $310 million.
For its fiscal 2018, Stitch Fix’s sales guidance sits in the range of $287 million to $297 million. Full-year revenue is expected to be up to $1.22 billion.
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