Stitch Fix Soars on Returning to Profits, Revenue Tops $2 Billion for First Time

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Stitch Fix Soars on Returning to Profits, Revenue Tops $2 Billion for First Time
Credit: © Reuters.

By Dhirendra Tripathi

Investing.com – Stitch Fix stock (NASDAQ: SFIX ) soared by 13% in Wednesday’s premarket as strong growth in women's and children’s segments helped the company swing back to profit in its fiscal fourth quarter.

Active clients at the online personal styling service rose 18% on-year and net revenue per active client by 4% as buyers returned to address their grooming needs after the pandemic.

The company reaped the benefit of expanded branded shops, lower client churn rates and higher product margins. It also got more bang for its buck in spending on transportation and advertising.

Net revenue rose 29% on-year to $571.2 billion, taking annual revenue past the $2 billion mark for the first time.

Net profit was $21.46 million, compared to a loss of $44.46 million in last year’s fourth quarter.

Stich Fix sees its first-quarter net revenue at $567.5 million at center of the guidance range, up 16%. Full-year net revenue is seen growing by 15% from last year’s $2.1 billion.

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