Stitch Fix Earnings: What To Look For From SFIX

Personalized clothing company Stitch Fix (NASDAQ:SFIX) will be reporting results tomorrow after market close. Here’s what investors should know.

Stitch Fix beat analysts’ revenue expectations by 5.4% last quarter, reporting revenues of $322.7 million, down 15.8% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ earnings estimates and full-year revenue guidance exceeding analysts’ expectations. It reported 2.63 million active clients, down 19.9% year on year.

Is Stitch Fix a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Stitch Fix’s revenue to decline 13% year on year to $317.3 million, improving from the 24.3% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.20 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Stitch Fix has missed Wall Street’s revenue estimates six times over the last two years.

Looking at Stitch Fix’s peers in the apparel, accessories and luxury goods segment, some have already reported their Q2 results, giving us a hint as to what we can expect. G-III’s revenues decreased 2.3% year on year, meeting analysts’ expectations, and PVH reported a revenue decline of 6%, in line with consensus estimates. G-III traded up 28.5% following the results while PVH was down 6.5%.

Read our full analysis of G-III’s results here and PVH’s results here.

Investors in the apparel, accessories and luxury goods segment have had steady hands going into earnings, with share prices flat over the last month. Stitch Fix is up 4.5% during the same time and is heading into earnings with an average analyst price target of $3.60 (compared to the current share price of $3.97).

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