Stitch Fix Earnings: Time to Sell?
There's no sugarcoating it. Stitch Fix's (NASDAQ: SFIX) latest earnings report was ugly.
Shares of the online styling service tumbled 18% after hours Tuesday after the company beat estimates in the first fiscal quarter of 2022, but its guidance for the current quarter was way off the mark.
After revenue posted 19% year-over-year growth in the first quarter to $581.2 million, the company sees second-quarter revenue growth at just flat to 3%, reaching $505 million to $520 million. The holiday quarter is a seasonally slow time for the company, which partly explains the sequential decline in sales. But that's not an excuse for the weak growth compared to the year-ago period, especially as it's lapping a quarter in which vaccines were still unavailable for most Americans. Therefore, the demand for apparel was below normal.
Source Fool.com
