Stitch Fix shares soar as sales top estimates, styling service raises full-year outlook

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The Stitch Fix application for download in the Apple App Store on a smartphone arranged in Hastings-on-Hudson, New York, U.S., on Saturday, June 5, 2021. Stitch Fix Inc. is scheduled to release earning on June 7.
Tiffany Hagler-Geard | Bloomberg | Getty Images

Stitch Fix shares soared on Monday after the online shopping and styling service reported a narrower-than-expected loss in its fiscal third-quarter, as sales topped analysts’ estimates, driven by consumers refreshing their wardrobes.

The company raised its revenue outlook for the full year, after previously lowering it due to the uncertainty stemming from the Covid pandemic. And it offered a better-than-expected sales outlook for its fiscal fourth quarter.

Here’s how Stitch Fix did during the period ended May 1 compared with what analysts were anticipating, using Refinitiv estimates:

  • Loss per share: 18 cents vs. 27 cents expected
  • Revenue: $535.6 million vs. $511 million expected

Stitch Fix’s loss narrowed to $18.8 million, or 18 cents per share, compared with a loss of $33.9 million, or 33 cents per share, a year earlier. That was better than the 27-cent loss expected by analysts.

Revenue grew 44% to $535.6 million from $371.7 million a year earlier, topping estimates for $511 million.

As of market close on Monday, Stitch Fix shares are down about 1% year to date. The company’s market cap is $6.2 billion.

Find the full financial press release from Stitch Fix here.

This story is developing. Please check back for updates.

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