Stitch Fix stock falls more than 16% after quarterly miss, lower guidance

Stitch Fix Inc.
SFIX,
+4.36%
shares fell more than 16% in the extended session Tuesday after company posted a mixed fiscal second quarter and guided for lower sales, saying it continues to face “challenges” in getting people to sign up for its online personal styling services. Stitch FIx said it lost $30.9 million, or 28 cents a share, in the quarter, compared with a loss of $21 million, or 20 cents a share, in the year-ago quarter. Revenue rose 3% to $517 million, the company said. Analysts polled by FactSet called for a loss of 31 cents on sales of $515 million. Stitch Fix continues “to experience challenges with onboarding and conversion of clients, which are not where we want them to be,” Chief Executive Elizabeth Spaulding said in a statement. “We remain confident in our long-term strategy, and are resolutely focused on building and enhancing the overall client experience … with an emphasis on growing active clients.” The company guided for fiscal third-quarter revenue between $485 million and $500 million, which would represent a year-on-year decline between 10% and 7% and contrast with analyst expectations around revenue of $559 million for the quarter. The stock ended the regular trading day up 4.4%.