Why Stitch Fix Shares Are Trading Higher Wednesday (CORRECTED)

Editor’s note: The year-over-year sales comparison has been updated to correct an error.

Stitch Fix, Inc. SFIX stock is moving higher Wednesday after the company released better-than-expected quarterly financial earnings and issued fiscal-year guidance above estimates.

What To Know: Stitch Fix issued financial earnings for the 2024 fiscal-year third quarter after the market closed on Tuesday.

The company reported an EPS loss of 18 cents per share, beating analyst estimates for a loss of 24 cents per share. The company reported sales at $322.70 million, which came in ahead of analyst estimates of $306.12 million. The company’s sales figure represents a 16% year-over-year decrease.

The company issued guidance for the 2024 fiscal-year fourth quarter and the entire 2024 fiscal year. For the fourth quarter, Stitch Fix sees revenue between $312 million and $322 million versus analyst estimates of $306.57 million.

For the 2024 fiscal-year, Stitch Fix expects revenue between $1.33 billion and $1.34 billion versus analyst estimates of $1.307 billion.

Analyst Changes: Following the financial earnings announcement, two analysts issued price target adjustments.

• Wedbush analyst Tom Nikic reiterates Stitch Fix with a Neutral and maintains $3 price target.
• Truist Securities analyst Youssef Squali maintains Stitch Fix with a Hold and raises the price target from $3.5 to $4.

“At Stitch Fix, we are on a mission to help people discover the styles they will love that fit perfectly so they always look and feel their best, and this commitment is at the heart of our transformation,” said Matt Baer, CEO, Stitch Fix.

“Our Q3 revenue and adjusted EBITDA exceeded our expectations, which we believe signals that our transformation efforts are beginning to work. While we are still in early days, I am confident that our strategic focus on strengthening our foundation and reimagining the client experience will put us on the right path to deliver sustainable, profitable growth in the future.”

Related Link: Merger-Bound Athletic-Inspired Fashion Retailer Hibbett Stumbles In Q1: Details

SFIX Price Action: At the time of writing, Stitch Fix stock is trading 24.9% higher at $3.33 per data from Benzinga Pro.

Image: Photo via Shutterstock.