Stitch Fix stock drops in late trading after earnings miss
Stitch Fix Inc. shares dropped in the extended session Monday after the company missed earnings expectations. Stitch Fix shares dropped nearly 4% in the extended session after rising almost 7% during regular trading. The company reported fiscal second-quarter net income of $3.6 million, or 2 cents a share, compared with net income of $233,000, in the year-ago period. Revenue increased to $295.9 million from $237.8 million in the year-ago period. Analysts surveyed by FactSet had estimated 6 cents a share on revenue of $291 million. Stitch Fix said it is expecting fiscal third-quarter sales of $300 million to $310 million and full year revenue of $1.19 billion to $1.22 billion. For the fiscal third quarter, analysts model earnings of 5 cents a share on sales of $301 million; Wall Street expects full year sales of $1.2 billion. Since the company’s trading debut in November, Stitch Fix stock has gained 63%, as the S&P 500 index rose 8%.