Stitch Fix Stock: Earnings Review and Guidance Update
Wednesday, 6 March 2024, 12:58
Stitch Fix's Financial Performance:
In its recent quarter, active clients plummeted by 17% year over year, resulting in a 21% stock decline. The company also reported an 18% decrease in revenue and a 48% drop in loss per share. Moreover, free cash flow was negative $26.1 million, contributing to a bleak outlook for fiscal 2024 revenue.
Reasons Behind the Decline:
- Missed Earnings: Falling short of Wall Street estimates.
- Light Revenue Guidance: Q3 guidance lower than expected.
- Reduced Outlook: Management revised full-year revenue expectations downward.
- Active Customer Decline: Reflecting dissatisfaction with the service.
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