Stitch Fix Inc. (NASDAQ: SFIX) is scheduled to release its fiscal fourth-quarter financial results after the markets close on Tuesday. The consensus forecast calls for $0.04 in earnings per share (EPS) and $432.28 million in revenue. The same period of last year reportedly had $0.18 in EPS and $318.3 million in revenue.
The company previously issued guidance calling for net revenues in the range of $425 million to $435 million and adjusted EBITDA of $5 million to $10 million.
During the fiscal third quarter, the company reached 3.1 million active clients, a 16.6% increase year over year, and it grew net revenue by 29.1% in that time.
The growth in net revenue reflected growth in both active clients and net revenue per active client, which were driven largely by healthy year-over-year growth in the Women’s segment and continued scaling of the Men’s segment.
Gross margin was 45.1% for the quarter, compared to 43.6% in the third quarter of last year. This represents the fifth consecutive quarter of year-over-year gross margin improvement. This strength was driven by both lower clearance activity and lower shrink expense year over year.
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Excluding Tuesday’s move, Stitch Fix had underperformed the broad markets, with its stock up just over 12% year to date. In the past 52 weeks, the stock was down 54%.
A few analysts weighed in on Stitch Fix ahead of the results:
- Stifel has a Buy rating with a $28 price target.
- Goldman Sachs has a Buy rating with a $38 target.
- RBC has an Outperform rating and a $43 price target.
- Needham has a Hold rating.
- SunTrust Banks has a Buy rating with a $44 target price.
- JPMorgan has a Neutral rating and a $34 target price.
Shares of Stitch Fix traded up about 3% to $19.80 on Tuesday, in a 52-week range of $16.05 to $37.72. The consensus price target is $34.13.
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