Why Stitch Fix Inc Stock Was Falling Apart Yesterday

Shares of Stitch Fix Inc (NASDAQ: SFIX) slumped on Wednesday -- closing down nearly 10% -- after the subscription clothing specialist reported its first public earnings report on Tuesday night. The stock moved up about 4% on Thursday. Though the company beat estimates on the top and bottom lines and posted strong customer growth, the market seemed to punish it for weaker-than-expected guidance for earnings before interest, taxes, depreciation, and amortization (EBITDA).

Image source: Stitch Fix.

Stitch Fix said revenue in its first fiscal quarter of 2018 increased 25.2%, to $295.6 million. That growth was driven by a 29.7% increase in active clients, defined as customers who have used the service in the last year, to 2.4 million. The attention on the company in the run-up to the November IPO may have helped it attract more customers.

Source: Fool.com