Stitch Fix Reports Q3 Earnings Miss, Active Clients Up 9%

Stitch Fix SFIX reported quarterly losses of 33 cents per share on Monday, which missed the analyst consensus estimate by 17 cents.

The company reported quarterly sales of $371.73 million, which missed the analyst consensus estimate of $406.66 million by 8.59%. This is a 9.09% decrease over sales of $408.89 million the same period last year.

"We grew active clients to 3.4 million, an increase of 9% year over year, and grew net revenue per active client by 6% year over year, our eighth consecutive quarter of growth and a reflection of our loyal and engaged client base,” said Stitch Fix founder and CEO Katrina Lake in a statement.

“In a time period where the broader apparel and accessories market saw sales decline 80%, we delivered $372 million in net revenue and expect a return to positive growth in Q4. We believe our business model and balance sheet uniquely position us to thrive in retail's next era, and we're excited to demonstrate that in the quarters ahead."

Stitch Fix shares were trading down 4.3% at $23.84 in Monday’s after-hours session. The stock has a 52-week high of $32.34 and a 52-week low of $10.90.