Stitch Fix Stock in Tatters on Earnings Miss, Weak Guidance, Job Cuts
Stitch Fix (NASDAQ: SFIX) stock plunged 16.3% in after-hours trading Thursday, following the online personalized-apparel retailer's release of its results for its fiscal 2022 third quarter. That drop was preceded by the stock's 10.5% decline during Thursday's regular trading session.
The daytime slump was attributable to media reports that the company was laying off a sizable portion of its salaried staff -- reports that management confirmed in the earnings release.
The main catalysts driving the after-hours sell-off were earnings that missed analysts' consensus estimate, a decline in the company's number of active clients, and disappointing revenue guidance for its fiscal fourth quarter.
Source Fool.com
