NEW YORK, NY / ACCESSWIRE / December 11, 2018 / While shares of Stitch Fix were initially seeing big gains in after-hours trading yesterday on the company’s first quarter results, things reversed with shares collapsing on the company forecasting that active subscribers wouldn’t increase in the holiday quarter. Shares were down about 15% in after-hours trading yesterday. Shares of DSW were also in the red despite any significant news from the company.
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Stitch Fix, Inc.
Stitch Fix, Inc. shares were sinking in after-hours trading on Monday after the subscription clothing company reported fiscal first quarter earnings. For the quarter, the company reported net income of $10.7 million, or 10 cents a share. This was compared to the $1.3 million, or 4 cents a share, that the company reported in the year ago quarter. Revenue of $366.2 million was ahead of the $295.6 million from the year ago period. Analysts had been waiting for earnings of 3 cents a share with revenue of $358 million. So why did shares plummet? Initially they were on the rise until traders became concerned about the company saying it did not expect to increase the number of its active subscribers in the holiday quarter. Stitch Fix said it does not expect to benefit from the holiday quarter as it sees more shoppers focusing on buying gifts for others than themselves. "We are just less active in marketing," compared with other retailers during the holiday season, President and Chief Operating Officer Mike Smith, told Reuters.
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DSW Inc. shares closed down 4.46% on nearly 6.3 million shares traded on Monday. There was no remarkable news from the company but it was last month that DSW announced that it has completed its previously announced acquisition of the operations of Camuto Group, the legendary product design and brand development organization best known for the successful Vince Camuto® brand and the footwear licenses of Jessica Simpson® and Lucky Brand®. The company has also given shoe subscription services JustFab and ShoeDazzle a chance to test reaction to brick-and-mortar. “DSW is all about innovating to support the customer experience, which means offering the customer intuitive, engaging and personalized services that provide limitless opportunities to express themselves,” the company said.
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SOURCE: The Market Edge