Stitch Fix shares soar as company reaches $2 billion in sales for first time

The clothing-subscription institution said successful a quality merchandise that it brought connected 643,000 progressive clients successful the quarter, an summation of 18% twelvemonth implicit year, to astir 4.2 million.

“These results bespeak beardown show crossed our business, successful Women’s, Kids and the U.K.,” Stitch Fix Chief Executive Elizabeth Spaulding said.

The company, which is based successful San Francisco, reported fourth-quarter nett income of $21.5 million, oregon 19 cents a share, compared with a nonaccomplishment of $44.5 million, oregon 44 cents a share, successful the year-ago period. Adjusted Ebitda was $55.4 million, adjusted for stock-based compensation and different costs. Revenue roseate to $571 cardinal from $443 cardinal successful the year-ago quarter.

Analysts surveyed by FactSet had expected a nonaccomplishment of 12 cents a stock connected gross of $548 million.

Stitch Fix posted a full-year nonaccomplishment of $8.9 million, oregon 8 cents a share, connected gross of $2.1 billion, compared with a nonaccomplishment of $67.1 cardinal successful the erstwhile year. Analysts had forecast a nonaccomplishment of 41 cents a stock connected gross of $2.08 billion.

For the archetypal quarter, the institution expects adjusted Ebitda nett income of $15 cardinal to $20 cardinal connected gross of $560 cardinal to $575 million, portion analysts are forecasting a nonaccomplishment of 14 cents a stock connected gross of $591 million.

Stitch Fix banal is down astir 40% twelvemonth to date, portion the S&P 500 Index SPX, -0.08% has risen 16% truthful acold this year.