Stitch Fix (NASDAQ:SFIX) shares declined sharply in Tuesday’s extended session after the company posted a larger than expected quarterly loss and offered soft guidance for the year ahead.
For the fiscal fourth quarter report, the San Francisco-based e-commerce and personal styling company posted a 16% year over year decline in net revenue to $481.9M and a diluted loss per share of $0.89. Analysts had expected $488.79M and a loss of $0.60, respectively.
“Today’s macroeconomic environment and its impact on retail spending has been a challenge to navigate, but we remain committed to working through our transformation and returning to profitability,” CEO Elizabeth Spaulding said. “We are also capitalizing on every customer touchpoint to build long-term relationships and reignite net active client growth.”
Nonetheless, 3.795M clients at the close of the quarter reflected a decrease of 370K, or 9%, as compared to 2021.
For the first quarter of 2023, management expects revenue to range from $455M to $465M, a 20% to 22% decline year over year and well below the $528M analysts had expected. Additionally, an adjusted EBITDA forecast of between a $15M and $10M loss came in worse than the $5.2M loss anticipated by the Street.
For the July 2023-ended fiscal year, the company expects revenue of between $1.76B and $1.86B and adjusted EBITDA to range from a $45M to $25M loss. Analysts had expected $2.1B in revenue and a lighter EBITDA loss of only $17M.
Shares of Stitch Fix (SFIX) declined nearly 9% shortly after the results were posted before moderating losses and stabilizing near a 5.5% decline in after hours trading. After hours losses imply the stock is headed for a new 52-week low, extending an over 85% drop for the stock in the past year.
Dig through the details of the results.