Stitch Fix, Inc. (NASDAQ: SFIX) shares hiked Friday after the company reported stronger-than-expected results for its third quarter. The company also announced the launch of Stitch Fix Kids.
The San Francisco-based online personal styling service, released Thursday its financial results for its third quarter of fiscal year 2018 and posted a letter to its shareholders on its investor relations website.
Highlights include delivering:
• Active clients of 2.7 million, an increase of 30% year over year
• Net revenue of $316.7 million, an increase of 29% year over year
• Net income of $9.5 million and adjusted EBITDA of $12.4 million
• Diluted earnings per share of $0.09
Said Founder and CEO Katrina Lake, "In addition to driving strong net revenue, net income, and adjusted EBITDA, we grew our active client count to 2.7 million, an increase of 30% year-over-year.
"We continue to balance growth and profitability, demonstrated by our ability to consistently deliver top-line growth of over 20% even as we invest in category expansions, technology talent, and marketing.”
Also, as indicated Thursday, the company announced the upcoming launch of Stitch Fix Kids.
"Our new Stitch Fix Kids offering is a testament to the scalability of our platform," explained Lake. "We’re excited for Stitch Fix to style everyone in the family and to create an effortless way for parents to shop for themselves and their children. Our goal is to provide unique, affordable kids clothing in a wide range of styles, giving our littlest clients the freedom to express themselves in clothing that they love and feel great wearing."
The shares gained $1.03, or 5.2%, in Friday’s first hour of trading to $20.70.
