Stitch Fix, Inc. (NASDAQ:SFIX) shares are trading higher Thursday after the company reported better-than-expected third-quarter financial results on Wednesday after the market closed.
- Stitch Fix stock is moving in positive territory. Why is SFIX stock advancing?
Q3 Highlights
Stitch Fix reported a loss of 1 cent per share, beating the consensus estimate of a 6 cent-loss. In addition, it reported revenue of $340.27 million, beating the consensus estimate of $331.43 million.
Active clients reached 2.309 million, up 0.9% sequentially — a notable milestone as it marks the first quarter of sequential client growth in recent periods — though still down 1.9% year-over-year.
Stitch Fix ended the quarter with $229.4 million in cash, cash equivalents, and investments and no debt. The company generated $11.8 million in operating cash flow and $6.5 million in free cash flow, and repurchased 4.5 million shares of Class A common stock for $15.1 million during the quarter.
“We delivered another strong quarter,” said Matt Baer, CEO. “These results reflect our team’s consistent execution of our strategy and underscore that the improvements we’ve made to our client experience and assortment are resonating.”
Guidance
Stitch Fix sees fourth-quarter revenue of between $322.00 million and $327.00 million, versus the consensus estimate of $323.66 million.
Stitch Fix Shares Edge Higher
SFIX Price Action: At the time of publication, Stitch Fix shares are trading 1.39% higher at $3.65, according to data from Benzinga Pro.
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