- Stitch Fix said its active clients grew 22 percent during the quarter to 2.9 million.
- Analysts were calling for slightly more active users, or 2.95 million.
- The personal styling service said it benefited during the quarter from adding new brands like Michael Kors, Bonobos, Converse and Madewell for shoppers to choose from.
Stitch Fix SFIX reported quarterly earnings and sales Monday that topped analysts' expectations, as the personal styling service continues to add active users to its platform. But the growth wasn't enough to meet a Wall Street forecast.
The stock initially surged as much as 11 percent but then pared those gains, falling more than 8 percent in after-hours trading. Ahead of the earnings report, Stitch Fix shares had gained nearly 3 percent so far this year.
The subscription-based styling service said its active clients grew 22 percent during the fiscal first quarter to 2.9 million, slightly below the 2.95 million active users analysts were predicting. In the previous quarter, the company struggled to meet active users expectations, having just gone public one year ago. Stitch Fix has since then been looking for ways to diversify its sources of revenue while managing investments.
It reported quarterly net income of $10.7 million, or 10 cents a share, compared with $1.3 million, or 4 cents per share, a year ago. Analysts were calling for earnings of 3 cents per share, based on a poll by Refinitiv.
Sales during the quarter grew 24 percent to $366 million, better than the $358 million expected by analysts.
Stitch Fix said it benefited during the quarter from adding new brands like Michael Kors KORS , Bonobos, Converse NKE and Madewell for shoppers to choose from. In the men's category, it added expanded sizes for clothes up to 3XL. It also continues to add more options for plus-size women.
"All of our assortment investments are deeply rooted in direct feedback from clients, so we're confident they're going to love our new additions," President and COO Mike Smith said in a statement.
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