Stitch Fix shares tumbled in extended trading Tuesday after the online styling service offered a weak outlook for its fiscal third quarter and slashed its forecast for the full year, as it struggles to grow its subscriber base.
In its latest quarter, the company said it experienced challenges with onboarding new customers and converting clients. Stitch Fix reported a per-share loss in line with analysts’ estimates and revenue slightly above expectations for the three-month period ended Jan. 29.
Looking ahead, however, Stitch Fix is being much more cautious about its prospects for future growth. Chief Executive Elizabeth Spaulding said the company’s active client count is not where she wants it to be. That’s despite a recently introduced option for shoppers to buy single items from its website, without a subscription, which is known as Freestyle.
Stitch Fix shares shed more than 17% in extended trading, having already tumbled 41% this year as of Tuesday’s market close.
Here’s how the retailer did in its fiscal second quarter compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:
- Loss per share: 28 cents vs. 28 cents expected
- Revenue: $516.7 million vs. $514.8 million expected