Stitch Fix stock sinks on trimmed forecast, falling sales and clothing demand


Shares of Stitch Fix Inc. SFIX, -8.93% fell 4% after hours on Tuesday after the online wardrobe-styling platform trimmed its full-year sales forecast and reported another drop in active clients for its fiscal first quarter. The company forecast full fiscal-year sales of between $1.6 billion and $1.7 billion, down slightly from a prior outlook of between $1.76 billion and $1.86 billion. Stitch Fix reported a first-quarter net loss of $55.9 million, or 50 cents a share, compared with a net loss of $1.8 million, or two cents a share, in the same quarter last year. Sales for that quarter fell 22% to $455.6 million, compared with $581.2 million in the prior-year quarter. Active clients fell 11% year-over-year to around 3.7 million, with sales per client roughly flat. Analysts polled by FactSet expected Stitch Fix to lose 47 cents a share, on revenue of $460 million, with active clients of 3.711 million. The company has struggled with what it called a “difficult macro environment” that has weighed on demand for clothing, as it tries to turn a profit and lean more into selling apparel directly.

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