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Why Stitch Fix Is Friday's Big Earnings Winner

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Stitch Fix Inc. (NASDAQ: SFIX) released its fiscal third-quarter financial report after the markets closed on Thursday. The company has been public only since November, and over this time its stock price has risen about 42%.

The company said that it had $0.09 in earnings per share on $316.7 million in revenue, compared with consensus estimates of $0.03 in EPS and $306.5 million in revenue.

During the quarter, the company noted, it had 2.7 million active clients, a 30% increase from the same period last year.

While the company did not offer any guidance for the coming quarter, there are consensus estimates from Thomson Reuters for $0.04 in EPS and $314.18 million in revenue for the fiscal fourth quarter.

On the books, the company said, it had $287.26 million in cash and cash equivalents, versus $110.86 million at the end of the previous fiscal year.

Katrina Lake, Stitch Fix founder and CEO, commented:

In addition to driving strong net revenue, net income, and adjusted EBITDA, we grew our active client count to 2.7 million, an increase of 30% year-over-year. We continue to balance growth and profitability, demonstrated by our ability to consistently deliver top-line growth of over 20% even as we invest in category expansions, technology talent, and marketing. Our third quarter results demonstrate continued positive momentum for Stitch Fix and the power of our unique ability to deliver personalized service at scale.

Shares of Stitch Fix were last seen up about 10%, at $21.59, and it has a consensus analyst price target of $26.83 and a 52-week range of $14.48 to $30.07.

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