Stitch Fix shares rose by 17% after the report

Stitch Fix shares rose by 17% after the report

Online design service Stitch Fix releases Q4 and FY 2021 report.

Stitch Fix is ​​a platform for selecting clothes and creating an individual design. Clients pay the company for design services and clothing. You can learn more about the Stitch Fix business in our review.

Here are Stitch Fix's financial results for the quarter:

  • revenue increased by 29%, up to $571.2 million;
  • operating profit amounted to 20.7 million - against a loss of 14.3 million a year earlier;
  • net profit amounted to 21.5 million - against a loss of 44.5 million a year earlier.

Here are the results for the whole year:

  • revenue increased by 23%, up to 2101.3 million dollars;
  • operating loss increased from 51.7 to 63.4 million;
  • net loss decreased from 67.1 to 8.9 million.

Stitch Fix's Q4 Revenue and Earnings Beyond Analysts' Expectations. After the report on the postmarket, the company's shares rose by 16,6%, to 41,4 $.

Stitch Fix sales have grown in recent months. People are more likely to attend social events, and parents began to send their children to school. According to management, sales of children's and women's clothing grew faster, than male sales.

By the end of the year, the number of active Stitch Fix clients had grown by 18%, up to 4.2 million. The amount of revenue per active client increased by 4%, to 505 $. As the company said, Customer churn in the fourth quarter fell to a minimum.

Stitch Fix recently launched a Freestyle service. Now customers will be able to buy a separate item without a subscription. Company CEO Elizabeth Spaulding believes, that Stitch Fix will be able to cover a wider market.

Stitch Fix's FY 2021 net income was impacted by miscellaneous non-cash expenses and income, including tax deductions and employee bonuses. The financial results of the company for the year can be estimated by adjusted EBITDA. In 2021, this indicator increased by 69%, from 38.5 to 64.9 million. But the company failed to cut its operating loss.. Stitch Fix still has to spend a lot on logistics and marketing, so it's too early to talk about the profitability of the business.

Stitch Fix predicts sales growth for next year 15%. This is less than analysts' expectations, who counted on 18%.

Excluding growth on the postmarket since the beginning of the year, Stitch Fix shares fell by 37%, to 35,5 $. Capitalization of the company - 3.7 billion dollars.

Stitch Fix shares rose by 17% after the report

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