Shares of Stitch Fix jumped as the online personal-styling services company raised its revenue outlook for the year after beating management expectations in its fiscal first quarter.
The stock was up 19.57% to $5.50 in post-market trading.
The San Francisco-based company said it now expects revenue for fiscal 2025 of $1.14 billion to $1.18 billion, representing a decline of up to 15% from the same period a year earlier. Stitch Fix had most recently guided for revenue of $1.11 billion to $1.16 billion.
"Our fiscal year is off to a strong start," Chief Executive Matt Baer said. "We continue to expect to return to revenue growth by the end of fiscal 2026."
For its fiscal second quarter, Stitch Fix expects revenue of $290 million to $300 million, down from $330.4 million for the same period a year earlier.
Analysts polled by FactSet forecast full-year revenue of $1.14 billion, and a second-quarter topline performance of $283.5 million.
Stitch Fix's outlook comes as it logs a narrower loss and another drop in revenue in its fiscal first quarter amid a declining active client base, which lost 74,000 users to a total of about 2.4 million since the prior quarter.
The company posted a net loss for the three months ended Nov. 2 of $6.3 million, or 5 cents a share, compared with a loss of $35.5 million, or 30 cents a share, for the same period a year earlier.
Revenue dropped 13% to $318.8 million, beating the $306.9 million expected by Wall Street.
"Our clients are responding to the newness we have brought to our assortment as well as the improvements we've made to our client experience," Baer said.
Stitch Fix, just like and subscription fashion company Rent the Runway, is struggling to convince customers to make recurring payments for its styling services. The companies have sought to reduce their costs by leaning into private brands as they attempt to stay ahead of fast-changing fashion trends in a cost-effective way.
Comments