346375

Earnings To Watch: Stitch Fix (SFIX) Reports Q1 Results Tomorrow


Petr Huřťák /
2024/06/03 3:00 am EDT

Personalized clothing company Stitch Fix (NASDAQ:SFIX) will be reporting results tomorrow after the bell. Here's what to look for.

Stitch Fix met analysts' revenue expectations last quarter, reporting revenues of $330.4 million, down 17.5% year on year. It was a weak quarter for the company. Its full-year revenue guidance missed and its declining active clients fell short of Wall Street's estimates. Furthermore, its cash burn and EPS loss were much worse than expected.

Is Stitch Fix a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Stitch Fix's revenue to decline 20.1% year on year to $306.2 million, improving from the 22.2% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.25 per share.

Stitch Fix Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.

Looking at Stitch Fix's peers in the apparel, accessories and luxury goods segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Figs posted flat year-on-year revenue, beating analysts' expectations by 1.6%, and Kontoor Brands reported a revenue decline of 5.4%, topping estimates by 3.8%. Figs traded down 4.4% following the results while Kontoor Brands was up 5.7%.

Read our full analysis of Figs's results here and Kontoor Brands's results here.

Investors in the apparel, accessories and luxury goods segment have had steady hands going into earnings, with share prices up 1.2% on average over the last month. Stitch Fix is up 9.3% during the same time and is heading into earnings with an average analyst price target of $3.3 (compared to the current share price of $2.4).

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.