Stitch Fix, Inc. (SFIX), a company that sells a range of apparel, shoes, and accessories through its Website and mobile application, has plunged 17.86% in aftermarket trading session. Consequently, SFIX stock is trading at $20.51 at the time of the writing. The stock has declined despite announcing robust quarterly results. The decline could be attributed to the decreased revenue for the year as compared to analyst expectations. On Tuesday, SFIX closed the day at $24.97 after gaining an increase of 4.61% during the mid-day session.
SFIX Q1 20222 Operational Results
On Tuesday, SFIX released the operational results for the first quarter of the fiscal year 2022. The quarter ended on 30th October. The company generated net revenue of $581.2 million for the quarter against $490.4 million for the same period of fiscal 2021. The operating loss bore by the company during the period stood at $1.85 million against $19.53 million for the same period of fiscal 2021. The net loss suffered by the company during the three-month period was $1.82 million (or $0.02 per basic and diluted share) against $9.5 million (or $0.09 per basic and diluted share) for the same period of fiscal 2021.
Financial Outlook for Q2 2022
Alongside the operational results, SFIX also released the financial outlook for the upcoming quarter. The company expects to generate net revenue between $505 million to $520 million during the three-month period. That depicts a 0% to 3% year-over-year growth. The company expects the adjusted EBITDA to stand between a loss of $5 million and $5 million in terms of gain.
Executive Commentary
Elizabeth Spaulding, CEO of SFIX, while commenting on the results said that the company has delivered outstanding results during the first quarter. The quarterly results reflect a strong performance in business by the company. The company is pleased with the progress it is making toward the vision of becoming the global destination for personal shopping.
Future Outlook for SFIX
During the last three months, SFIX stock has declined more than 35%. That could be attributed to the uncertainty due to the prevalence of the pandemic during the period. However, analysts believe that the stock is in a good shape to provide potential investors with dividends in quarters to come.
