Stitch Fix earnings (NASDAQ:SFIX) came in ahead of what the Wall Street guidance was called for in the company’s after-hours quarterly report, but shares were sinking late in the day as the online shopping service had a user growth that lagged when compared to expectations.
The Bay Area-based apparel company said that for its first quarter of fiscal 2019, it brought in net income of $10.7 million, or 10 cents per share, compared to the earnings of $1.3 million, or 4 cents per share from the year-ago quarter. Analysts were calling for the company to bring in earnings of 3 cents per share, according to data compiled by Refinitiv.
Revenue for Stitch Fix in the period tallied up to $366 million, marking a 24% gain compared to its year-ago quarterly figures. Analysts were calling for revenue of $358 million, according to data compiled by Refinitiv.
However, shares dropped due to the company reporting a user growth of 2.9 million, which is below the 2.95 million that analysts were projecting. Stitch Fix did benefit during the period by adding more luxury brands to its portfolio such as Michael Kors, Bonobos, Converse and Madewell.
SFIX stock is plummeting close to 12.6% after the bell on Monday following the company’s quarterly earnings showing, due in part to a decline in the company’s user growth. Stitch Fix shares fell nearly 1.5% during regular trading hours in anticipation of the company’s quarterly results.