Key Takeaways:
- Revenue hit $340.3M, topping the $338.1M consensus estimate.
- Per-share loss of $0.01 beat expectations by nearly 5 cents.
- The company narrowed losses for the third consecutive quarter.
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Stitch Fix beats Q3 estimates as EPS loss narrows to 1 cent
Stitch Fix reported Q3 revenue of $340.3 million, beating consensus estimates, while its per-share loss narrowed to 1 cent.
The San Francisco-based personal styling service posted a net loss of $0.01 per share for the quarter ended May 2, compared with the $0.057 loss analysts had projected, according to data compiled by Bloomberg. Revenue of $340.3 million topped the $338.1 million consensus estimate by about $2.2 million.
The results mark the third consecutive quarter in which Stitch Fix has reduced its per-share loss, signaling continued progress in the company's turnaround efforts. The company did not disclose guidance for the current quarter or provide a same-store sales metric, which is the key operating metric for retail companies.
Stitch Fix has been working to stabilize its active client base and improve inventory management after a post-pandemic slowdown in demand for its subscription-based styling service. The narrower loss suggests cost-control measures and operational efficiencies are gaining traction.
The earnings beat comes as the broader retail sector faces headwinds from shifting consumer spending patterns. Investors will watch for any updates on client retention and average order value when the company holds its earnings call later today.
This article is for informational purposes only and does not constitute investment advice.
