Stitch Fix shares soar as company beats expectations, launches kids line
Shares of Stitch Fix Inc. soared more than 14% late Thursday after the online personal styling company beat fiscal third-quarter per-share earnings and sales expectations and announced the launching of a service for children. Stitch Fix said it earned $9.5 million, or 9 cents a share, in the quarter, versus a loss of $9.6 million, or 38 cents a share, in the year-ago quarter. Sales rose 29% to $316.7 million, from $245 million a year ago. Analysts polled by FactSet had expected earnings of 3 cents a share on sales of $307 million. The company said it had 2.7 million active customers, an increase of 30% year over year. Stitch Fix announced the launching of Stitch Fix Kids, aiming at creating “an effortless way” for parents to shop for themselves and their children. “Our new Stitch Fix Kids offering is a testament to the scalability of our platform,” founder and CEO Katrina Lake said in a statement. Shares of Stitch Fix ended the regular trading day down 4.7%.