Stitch Fix (SFIX) to Report Q4 Earnings: What's in the Offing?
Stitch Fix, Inc. SFIX is expected to register a year-over-year decline in its top line when it reports fourth-quarter fiscal 2023 earnings on Sep 18, after market close. The Zacks Consensus Estimate for quarterly revenues currently stands at $371.5 million, suggesting a 22.9% fall from the year-ago fiscal quarter’s tally.
The Zacks Consensus Estimate for the fiscal fourth quarter’s loss is pegged at 22 cents, narrower than the loss of 65 cents a share recorded in the year-earlier fiscal quarter. The consensus estimate has been stable in the past 30 days.
This online personal-styling service provider delivered an earnings surprise of 7.7% in the trailing four quarters, on average.
Factors at Play
A challenging macroeconomic backdrop, including headwinds like inflationary pressures and potential shifts in customer demand, might have hurt Stitch Fix’s quarterly performance. Continued pressure on net active clients and higher promotional activity are weighing on results. These factors, coupled with any deleverage in selling, general and administrative expenses, might have affected SFIX’s performance in the fiscal fourth quarter. Also, increased investments in the Freestyle drive and new channels add up costs and might have dented margins.
In its last earnings call, management projected net revenues of $365-$375 million for the fourth quarter of fiscal 2023, indicating a 22-24% decline from the year-ago fiscal quarter’s reported figure. Our consensus estimate for active clients shows that there will be a year-over-year decline of 12.9% in the metric for the fiscal fourth quarter. The Zacks Consensus Estimate for net revenue per active client is currently pegged at $494, indicating a drop of 9.5% year over year.
On the positive side, Stitch Fix has been expanding its digital capabilities and personalized shopping for a while to offer clients the best-in-class service. SFIX’s Freestyle drive offering quite a distinct shopping experience is encouraging. This platform enables customers to discover and buy curated items according to their style, preferences, fit and size.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Stitch Fix this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as elaborated below. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Stitch Fix, Inc. Price and EPS Surprise
Stitch Fix, Inc. price-eps-surprise | Stitch Fix, Inc. Quote
Stitch Fix has a Zacks Rank #2 and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are three other companies you may want to consider, as our model shows that these too, have the right combination of elements to post an earnings beat:
Skechers SKX currently has an Earnings ESP of +0.41% and sports a Zacks Rank #1. The company will likely register a bottom-line increase when it reports third-quarter 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 77 cents suggests a rise of 40% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Skechers’ top line is expected to increase year over year. The consensus estimate for quarterly revenues is pegged at $2.01 billion, which indicates a rise of 6.8% from the figure reported in the prior-year quarter. SKX has a trailing four-quarter earnings surprise of 39.1% on average.
Darden Restaurants DRI has an Earnings ESP of +0.72% and a Zacks Rank #2 at present. Darden Restaurants is expected to register a bottom-line increase when it reports first-quarter fiscal 2024. The Zacks Consensus Estimate for DRI’s earnings is pegged at $1.72 per share, suggesting growth of 10.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for quarterly revenues is pegged at $2.7 billion, which indicates growth of 10.5% from the figure reported in the prior-year quarter. Darden Restaurants has a trailing four-quarter earnings surprise of 3.6%, on average.
Levi Strauss & Co. LEVI currently has an Earnings ESP of +0.05% and carries a Zacks Rank #3. LEVI has a trailing four-quarter earnings surprise of 15.3%, on average.
The Zacks Consensus Estimate for Levi Strauss’ third-quarter fiscal 2023 quarterly earnings per share is pegged at 27 cents, down 32.5% from the figure reported in the year-ago quarter. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.6 billion, which indicates growth of 1.9% from the figure reported in the prior-year quarter.
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Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report
Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report
Stitch Fix, Inc. (SFIX) : Free Stock Analysis Report
Levi Strauss & Co. (LEVI) : Free Stock Analysis Report
