For the quarter, StitchFix (ticker: SFIX) reported revenue of $490.4 million, up 10% from a year ago, and above the Street consensus forecast of $480.2 million. The company had not provided specific guidance for the quarter, but projected growth in the mid-to-high single digits. Earnings were 9 cents a share, well ahead of the Street consensus forecast for a loss of 2 cents a share.
For the January quarter, the company sees revenue of $506 million to $515 million, with an adjusted Ebitda loss (earnings before interest, taxes, depreciation and amortization) of between $3 million and $6 million. For the full year, StitchFix sees revenue of $2.05 billion to $2.14 billion, up between 20% and 25%, above the Street consensus at $2.01 billion.
“Our robust demand trends along with our improved supply-side position give us greater visibility and confidence to reinstate our quarterly guidance and share our full-year outlook,” the company said in a letter to shareholders. “While we have planned for a wide range of scenarios, one note of caution, our guidance today does reflect that our fulfillment centers will continue to remain fully operational and will not face any significant disruption from potential government-related Covid mandates.”
StitchFix also said that it expects active client growth to drive January quarter revenue growth. “In past [January quarter] periods, we have traditionally pulled back on advertising during the holiday season given that clients tend to be focused more on intent-based purchases and gifting to others and, as a result, we saw lower marketing efficiencies,” the company said in the letter.
“However, with our direct buy offering, we now can play a greater role with clients’ intent-based shopping during the holiday season,” the company added. “As such, we plan to lean in and anticipate that advertising as a percent of revenue will be between 11% and 13% in the quarter.”
CEO Katrina Lake said in a statement that the company hit “several multi-year highs” in the quarter, “including our highest sequential client addition on record.”
StitchFix also announced that it had hired Dan Jedda, who had been the CFO for Amazon’s digital video, digital music, advertising and corporate development groups.
StitchFix shares in late trading have jumped 35.4%, to $48.58.
Write to Eric J. Savitz at email@example.com