Stitch Fix share price up 28% after Q2 earnings revenue beat
The online clothing company's stock rises after a positive Q2 earnings report.
Online clothing and personal styling company Stitch Fix share price soared after a positive second quarter(Q2) earnings report. Stitch Fix’s Q2 revenue exceeded Wall Street expectations.
Stitch Fix results: key figures
| Earnings per share | $0.12 |
| Revenue | $370 million |
| Active clients | 2.96 million |
Stitch Fix share price up 28% as earnings revenue beats estimates
Stitch Fix’s earnings per share was $0.12, far above the $0.05 that Wall Street expected. Stitch Fix’s revenue of $370 million surpassed the $365 million predicted by financial experts. The company’s active clients were 2.96 million, an 18% increase from 2018.
The online clothing subscription company has changed retail with its personalised approach to serving customers and focus on analytics to anticipate customers’ needs. Founder and chief executive officer(CEO), Katrina Lake, touted the success of Stitch Fix’s Q2 results.
‘Q2 was another strong quarter for us, delivering net revenue of $370.3 million, exceeding our guidance and representing 25% year-over-year growth,’ said Lake.
‘Since becoming a public company, we have posted six consecutive quarters of over 20% growth, which demonstrates our ability to drive consistent business performance,’ added Lake.
How do Stitch Fix’s Q2 results compare to other online retailers?
Compared to another online retailer,Farfetch, Stitch Fix's Q2 revenue report was also positive. Farfetch had a better-than-expected Q4 revenue, with $195 million in revenue.
What is Stitch Fix’s Q3 forecast?
With a positive Q2 earnings report, Stitch Fix’s Q3 forecast is high. The corporation predicts Q3 revenue between $388-$398 million, surpassing financial analysts’ estimates of $384 million. The company also forecast 2019 revenue between $1.53-$1.56 billion, beating projections of $1.51 billion.
Growth of online personalised shopping boosts Stitch Fix’s profits
Stitch Fix’s Q2 earnings success shows how companies can use analytics to create a customised shopping experience. Lake expressed optimism about the growth of Stitch Fix.
‘I’m proud that we’re now serving 3 million people across the US. and remain focused on delighting our existing clients and expanding our reach,’ said Lake.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
