Stitch Fix, Inc. (NASDAQ:SFIX) stock is moving lower on Wednesday after the company reported 2024 fiscal-year fourth quarter results, including worse-than-expected EPS.
What Happened: The company reported on Tuesday after the market closed a loss of 29 cents per share missing analysts estimate of a loss of 19 cents per share.
Revenue: Stitch Fix reported sales of $319.6 million beating analysts estimate of $318.5 million. The reported sales figure represents a 12.4% decrease year-over-year.
Other Figures: The company reported a net loss of $35.7 million, adjusted EBITDA of $9.5 million and free cash flow of $4.5 million.
FY24: Stitch Fix reported financials for the fiscal year as a whole. The company reported net revenue of $1.34 billion, Adjusted EBITDA of $29.3 million and free cash flow of $14.2 million. Lastly, Stitch Fix stated that it saw a 19.6% year-over-year decrease in active clients with a current count of 2,508,000,
"We are executing our transformation strategy with discipline and, during the fourth quarter, we delivered results at the high end of our guidance on both the top and bottom line," said Matt Baer, CEO, Stitch Fix.
Guidance: Stitch Fix sees net revenue between $303 million and $310 million for the 2025 fiscal-year first quarter.
Analyst Changes: Following the earnings report, several analysts issued price target adjustments.
- Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating on Stitch Fix and maintained a $4 price target.
- Canaccord Genuity analyst Maria Ripps maintained a Hold rating on Stitch Fix and lowered the price target from $4.5 to $3.5.
SFIX Price Action: At the time of writing, Stitch Fix shares are moving 36% lower at $2.40 per data from Benzinga Pro.
Image: Photo courtesy of Stitch Fix