Stitch Fix Surges on Sales Figures

Stitch Fix Inc. (NASDAQ:SFIX) saw its shares climb sharply Wednesday on sales numbers just handed down.

The company reported fourth-quarter FY21 sales growth of 29% year-on-year, to $571.16 million, beating the analyst consensus of $547.89 million.

Active clients of 4.16 million increased 18% Y/Y. Revenue per active client amounted to $505, a 4% rise Y/Y. Gross profit rose 33.3% Y/Y to $265.4 million, and the margin was 46.5%.

The operating margin was 3.6%, and operating income for the quarter was $20.7 million. Adjusted EBITDA surged to $55.4 million. EPS of $0.19 beat the analyst consensus of $(0.13).

Stitch Fix held $231 million in cash and equivalents as of July 31, 2021.

Stitch Fix sees Q1 net revenue of $560 million - $575 million versus the consensus of $591.56 million. The company expects an adjusted EBITDA of $15 million - $20 million.

Stitch Fix also anticipates FY22 sales of >15% Y/Y, representing about $2.416 billion, versus the consensus of $2.47 billion.

Said CEO Elizabeth Spaulding said, "In Q4 we delivered $571 million in net revenue, reflecting 29% year-over-year growth, helping us cross $2 billion in annual net revenue for the first time.

"These results reflect strong performance across our business, in Women’s, Kids and the UK. Today, we are proud to serve almost 4.2 million clients, and with the launch of Stitch Fix Freestyle in August we are significantly increasing our addressable market and we’re energized by the opportunity ahead."

SFIX shares are trading higher by $5.54, or 15.6% at $41.00 early Wednesday.