Stitch Fix stock falls on fourth-quarter revenue miss

Yahoo Finance's Jared Blikre breaks down Stitch Fix's earnings report in the after-hours trading session.

Video Transcript

DAVE BRIGGS: All right, an earnings alert for you. Stitch Fix earnings are out and check out the after hours number, down, oof, north of 7%. At the moment, Jared Blikre is here with the numbers, which, presumably, are not so good.

JARED BLIKRE: It could have been better here. It looks like a double miss. So on the top line number, net revenue for the fourth quarter coming in at $481.9 million. That's down 16% year over year. And that is lower than the estimate of 489.4 million. Now the loss per share also wider than expected. That was $0.89. That's a loss, and that compares to EPS of $0.19 last year. So that was a profit last year. But the Street was expecting a $0.64 loss, and it was bigger than that.

Active clients, 3.8 million. That's down 8.9% year over year. And a reminder, this was a pandemic darling back in the day. A lot of people signed up and a lot of people skirted that membership. Revenue per active client, $546. That's up 8.1% year over year. No inflation breakdown that I'm seeing. Adjusted EBITDA loss, $31.8 million versus profits of 55.4 million year over year. Estimated loss was a bit lower, 30.5 million.

And then here's some commentary for the fiscal year ending July 29, 2023. We expect revenue, net revenue to be between 1.76 billion and 1.86 billion, and adjusted EBITDA to be between $45 million loss and a $25 million loss. And also seeing here, that's the revenue projections.

I just want to add one note. This is from the CEO. Today's macroeconomic environment and its impact on retail spending has been a challenge to navigate, but we remain committed to working through our transformation and returning to profitability. So, in a nutshell, it's been tough for this company. Could it have been worse? Maybe.

DAVE BRIGGS: And it could get tougher down the road. They have a class action lawsuit on behalf of shareholders related to a platform switch. So it's not getting better any time soon. Jared Blikre, good stuff. Thank you, sir.