Stitch Fix (SFIX) Stock Declines Despite Q4 Earnings Beat
Zacks Investment Research | Oct 02, 2019 11:05PM ET
Stitch Fix, Inc. (NASDAQ:SFIX) reported fourth-quarter fiscal 2019 results, wherein the bottom line surpassed the Zacks Consensus Estimate, while revenues came in line. Despite earnings beat, shares of this San Francisco, CL-based company failed to buoy investor optimism. We note that the stock plunged 10.8% on Oct 2, and is trading close to its 52-week low of $16.05.
The dismal run on the bourses can be attributed to management’s soft view for the first quarter and fiscal 2020. Further, the bottom line declined year over year.
Management now envisions first-quarter revenues in the band of $438-$442 million, indicating an improvement of 20-21% from the year-ago quarter. Meanwhile, the Zacks Consensus Estimate for the same is pegged at $451.3 million, higher than the guided range.
Moving on, fiscal 2020 revenues are estimated in the range of $1.9-$1.93 billion, suggesting year-over-year growth of 20.5-22.5%. However, the mid-point ($1.915 billion) of the projected range is marginally below the Zacks Consensus Estimate of $1.92 billion.
Meanwhile, this Zacks Rank #3 (Hold) stock has plunged 42.1% in the past three months compared with the Zacks Investment Research
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