×
250
Fashion Jobs
SPORTS DIRECT
Loss Prevention Supervisor - Sports Direct
Permanent · CARRICKMINES
SPORTS DIRECT
Loss Prevention Supervisor - Sports Direct
Permanent · LIMERICK
SPORTS DIRECT
Loss Prevention Supervisor - Sports Direct
Permanent · DUBLIN
PHV
Country vm Manager, Ireland
Permanent · Dublin
H&M
Visual Expert Manager - Deco & Curation - College Green
Permanent ·
CANADA GOOSE
Security Ambassador
Permanent · DUBLIN
BESTSELLER
Jack & Jones Sales Representative
Permanent · Dublin 12
BESTSELLER
Vero Moda Sales Representative
Permanent · Dublin 12
BESTSELLER
Junior Head Office Sales Representative
Permanent · Dublin 12
SPORTS DIRECT
Loss Prevention Supervisor - Sports Direct
Permanent · DUBLIN
SPORTS DIRECT
Loss Prevention Supervisor - Sports Direct
Permanent · NEWBRIDGE
PRIMARK
External Reporting And Compliance Accountant
Permanent · Dublin
PRIMARK
Business Analyst
Permanent · Dublin
PRIMARK
Senior Finance Transformation Manager- Payroll
Permanent · Dublin
PRIMARK
Team Manager Dublin Area
Permanent · Dublin
L'OREAL GROUP
Retail Brand Manager - Vichy - Acd
Permanent · Dublin
PRIMARK
Business Analyst - Data & Analytics
Permanent · Dublin
ESTÉE LAUDER
Clinique - Consultant - Brown Thomas - 37.5 Hours
Permanent · Cork
PRIMARK
Cyber Security Operations Engineer
Permanent · Dublin
PRIMARK
Cyber Security Operations Analyst
Permanent · Dublin
PRIMARK
Administrator – Buying, Merchandising And Design
Permanent · Dublin
PRIMARK
Senior Finance Transformation Manager - Source to Pay
Permanent · Dublin
Published
Sep 23, 2020
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Stitch Fix returns to revenue growth, disappoints with net loss

Published
Sep 23, 2020

Following a rough Q3 caused by coronavirus-related disruptions, San Francisco-based online styling service Stitch Fix, Inc. announced an uptick in revenues in the fourth quarter ended August 1, 2020, but failed to impress Wall Street with a net loss of $44.5 million, or $0.44 per diluted share.


After a difficult Q3, Stitch Fix struck a more optimistic tone with its Q4 results - Instagram: @stitchfix

 
Stitch Fix’s latest Q4 loss compared unfavorably to the net earnings of $7.2 million, or $0.07 per diluted share, reported by the company in the prior-year period. The quarterly loss was also significantly greater than that of $0.18 predicted by Wall Street analysts, a fact which caused Stitch Fix’s stock to take a dive of more than 14% in after-hours trading on Tuesday.
 
The company was, nonetheless, eager to highlight that its fourth-quarter net revenue of $443.4 million represented an 11% increase from the $432.1 million that it achieved in the comparable period in the previous year.

This rise reflected a year-over-year increase of 9% in the platform’s active clients, who now total 3.5 million, as well as 2% growth in net revenue per active client, which came to $486.
 
“I'm very pleased with our strong Q4 results and our return to topline growth,” said Stitch Fix founder and CEO Katrina Lake in a release.
 
The company’s president, Elizabeth Spaulding, also highlighted the momentum of the platform’s new direct buy offering and, based on this success, revealed plans to expand the service.
 
“It’s still early days, but the ability to shop personalized items and outfits in our feed-based experience is clearly resonating with our clients,” she said. “Our styling algorithms combined with input from our talented stylists, and the network effects of nearly 10 years of shopping data are enabling clients to now shop via direct buy without ever having purchased something from us in the past.”
 
For the full fiscal year, Stitch Fix reported net revenue of $1.7 billion, up 11% from $1.6 billion in the previous year. The company’s annual net loss was $67.1 million, or $0.66 per diluted share, compared to net earnings of $36.9 million, or $0.36 per diluted share, in the previous year.
 
Although the Covid-19 pandemic has led to a sharp increase in online shopping, Stitch Fix was unable to take full advantage of its digital focus in the third quarter due to fulfillment delays. This situation caused an order backlog at the platform, meaning that its Q3 sales dropped 9% to $371.7 million.
 
With these issues seemingly resolved, the company is optimistic about its future in a market that has made a major shift towards e-commerce.
 
“I'm proud of our team for successfully navigating through the deepest impacts of Covid-19 and am excited to bring our model of an individual and deeply personalized shopping experience to even more consumers as they transition to a future of online shopping,” concluded Lake.

Copyright © 2023 FashionNetwork.com All rights reserved.