Stitch Fix beats estimates, revenues surge 25%
Online fashion subscription Stitch Fix said on Monday that net revenues continued to surge in the last quarter, as more U.S. shoppers took to the personalised styling service, which has posted six consecutive quarters of over 20% growth.
The San Francisco-based Stitch Fix said second-quarter net revenues increased 25% on the year prior, to $370.3 million. The U.S. e-commerce company also registered net income of $12 million, with adjusted EBITDA totalling $19.2 million, for the quarter ended January 26.
Diluted earnings per share were $0.12, surpassing expectations of 5 cents per share and revenue of $364.9 million, according to IBES data from Refinitiv.
Net revenue per active client -- those who received a package in the last 12 months -- saw an increase of 6.1 percent during the quarter to $463.
Launching in 2011 by the hand of Karina Lake, the company went on to become a public-listed company in 2017. Since then, the fashion firm has maintained a dominating growth trajectory in the last several quarters.
“Since becoming a public company, we have posted six consecutive quarters of over 20% growth, which demonstrates our ability to drive consistent business performance," said Stitch Fix Founder and CEO Katrina Lake.
Lake said the company now serves 3 million people across the U.S., thanks to more focused marketing and increased promotions; a strategy the company said it plans to continues in the new year.
"We launched our first integrated brand campaign in February to increase awareness and consideration with new and existing clients and we’re excited to connect even more people to the power of personalized styling," added Lake.
Other achievements include the company's expansion from being an online womenswear subscription styling service to now selling plus and small-sizing, as well as maternity wear, menswear and children's wear.
It has also recently expanded into the UK.
Looking ahead to 2019, Stitch Fix said it now expects full-year revenue to be between $1.53 billion and $1.56 billion, up from $1.49 billion to $1.53 billion it previously forecast.
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