Stitch Fix's (SFIX) Q1 Earnings Coming Up: What's in the Cards?
Stitch Fix, Inc. SFIX is expected to have registered a year-over-year decrease in its top line when it reports first-quarter fiscal 2024 earnings on Dec 5, after market close. The Zacks Consensus Estimate for quarterly revenues is currently $362 million, suggesting a 20.6% decrease from the year-ago fiscal quarter’s tally.
The consensus estimate for the fiscal first quarter’s loss is pegged at 23 cents per share, narrower than the loss of 46 cents a share recorded in the year-earlier fiscal quarter. The consensus estimate has been stable over the past 30 days.
This online personal-styling service provider delivered an earnings surprise of 13.2% in the trailing four quarters, on average.
Factors at Play
Stitch Fix’s quarterly performance is likely to have been hurt by a challenging macroeconomic backdrop, including headwinds like inflationary pressures and potential shifts in customer demand. Continued pressure on net active clients and higher promotional activity have been weighing on the company’s results. These factors, coupled with any deleverage in selling, general and administrative expenses, are expected to have affected SFIX’s performance in the fiscal first quarter. Also, increased investments in the Freestyle drive and new channels have been adding up to costs and are likely to have weighed on margins.
On its last earnings call, management projected net revenues to be $355-$365 million for the first quarter of fiscal 2024, indicating an 18-20% decline from the year-ago fiscal quarter’s reported figure. Stitch Fix had expected adjusted EBITDA in the band of $2-$7 million, with a margin of 1% to 2%. We expect a decline of 19.6% in active clients for the fiscal first quarter. We anticipate net revenue per active client to be $518, indicating a drop of 1.3% 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, which offers 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 currently has an Earnings ESP of 0.00% and a Zacks Rank of 3.
Stocks With The Favorable Combination
Here are a few companies, which according to our model, have the right combination of elements to come up with an earnings beat this reporting cycle:
Casey's General Stores CASY currently has an Earnings ESP of +0.04% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to register a bottom-line decrease when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.52 suggests a decline of 4.1% from the year-ago quarter.
The consensus mark for revenues is pegged at $4.1 billion, indicating a rise of 3.8% from the figure reported in the year-ago quarter. CASY has a trailing four-quarter earnings surprise of 17.5%, on average.
Genesco GCO currently has an Earnings ESP of +0.09% and a Zacks Rank of 2. GCO is likely to register a top-line decline when it reports third-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for Genesco’s quarterly revenues is pegged at $583 million, calling for a drop of 3.5% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share of 83 cents suggests a 49.7% decrease from the figure reported in the year-ago quarter. GCO has a trailing four-quarter earnings surprise of 1.8%, on average.
Costco COST currently has an Earnings ESP of +5.23% and a Zacks Rank of 3. COST is likely to register a bottom-line increase when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.44 suggests an increase of 11% from the year-ago fiscal quarter’s reported number.
Costco’s top line is expected to improve from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $57.7 billion, suggesting growth of 6% from the prior-year fiscal quarter’s reported figure. COST has a trailing four-quarter earnings surprise of 2.1%, on average.
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Stitch Fix, Inc. (SFIX) : Free Stock Analysis Report
