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Stitch Fix Plummets 40% On Poor Sales Outlook

Tanzeel Akhtar

Stitch Fix (NASDAQ: SFIX) reported quarterly earnings of 11 cents per share on Monday, which beat the analyst consensus estimate of 6 cents. This is a 8.33% decrease over earnings of 12 cents per share from the same period last year.

The company reported quarterly sales of $451.8 million, which missed the analyst consensus estimate of $452.53 million by 0.16%. This is a 22.02% increase over sales of $370.28 million the same period last year.

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Stitch Fix sees third-quarter sales of $465-$475 million, far below the $506 million estimate.

"Net revenue was $452 million, representing 22% year-over-year growth, in line with our guidance,” said Stitch Fix founder and CEO Katrina Lake. “We grew active clients to 3.5 million, an increase of 17% year over year, and grew net revenue per active client by 8% year over year, our seventh consecutive quarter of growth and a reflection of our unique personalization capabilities."

Stitch Fix shares were trading down 41% at $12.34 in Monday’s after-hours session. The stock has a 52-week high of $37.72 and a 52-week low of $16.99.

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