Why Stitch Fix Stock Plunged as Much as 20.5% at the Open Today
Shares of Stitch Fix (NASDAQ: SFIX), which bills itself as an online personal shopping and styling service, fell sharply at the open on March 9, losing as much as 20.5% of its value in early trading. The big story here was the retailer's fiscal second-quarter 2022 earnings release, which hit the market after the close on March 8. Investors were clearly displeased with the update and for good reason.
Stitch Fix's sales came in at $517 million in the fiscal second quarter of 2022, up around 3% from the same period of fiscal 2021. Notably, sales per client reached $518, up 18% year over year. It was the third consecutive quarter that per-client sales were above $500. The company has 4.02 million active clients, up 4% year over year. All in, the company's top line bested Wall Street's expectations. Stitch Fix lost $0.28 per share in the fiscal second quarter. That was worse than the $0.20 per share it lost in the same period of fiscal 2021, but actually better than what analysts had been predicting. That's the good news.
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Source Fool.com
