Stitch Fix posts surprise profit, appoints Amazon alum as new CFO
The online styling service has reported a profit of $9.5 million in the first quarter, thanks to accelerated customer growth during the Covid-19 pandemic. On Monday, the company also named Dan Jedda as its new CFO.
Online styling service Stitch Fix, Inc. reported a profit of $9.5 million, or $0.09 per diluted share, for the first quarter ended October 31, 2020, on Monday, progress supported by accelerated customer growth during the Covid-19 pandemic.
Compared to a net loss of $178,000 in the prior-year period, the solid Q1 profit came as a surprise to the markets in the current economic climate, sending shares in the company shooting up more than 50% on Tuesday.
Quarterly net revenue at the San Francisco-based company totaled $490.4 million, increasing 10% from $444.8 million in the prior-year period. This reflected a 10% year-over-year rise in active clients, who numbered close to 3.8 million at the end of the quarter, partially offset by a decrease of 4% in revenue per client, which was $467.
“This quarter we are proud to have achieved several multi-year highs, including our highest sequential client addition on record and the highest level of successful first Fixes in the past five years,” commented Stitch Fix founder and CEO Katrina Lake in a release. “We're excited about the momentum in our business, confident in the future ahead, and we expect to deliver between 20% and 25% growth for the full year.”
On Monday, the company also announced the appointment of Dan Jedda as its new chief financial officer, effective December 9, 2020.
In his new role, Jedda will lead Stitch Fix’s finance team and partner closely with the other members of the company’s leadership team as he seeks to expand the business’ growth opportunities. He will report directly to Lake.
Jedda joins Stitch Fix from Amazon, where he served as vice president and CFO for digital video, digital music and the company’s advertising and corporate development organizations. During his 15 years at the American e-commerce giant, the executive enabled strong growth in these businesses, many of which he accompanied from the moment of their inception.
“Dan brings extensive experience funding and scaling some of the most innovative businesses at Amazon,” explained Lake. “[He] will play a critical role in helping us expand our personalization platform to deliver the most relevant, resonant and delightful shopping experiences to consumers everywhere.”
“His insight, energy and vision will be a great asset to our business as we move into the next stage of Stitch Fix’s growth,” she concluded.
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