Despite income growth, the Stitch Fix active customer base decreased by 10.6 percent year after year to 2.35 million. Net income per active customer increased 3.2 percent to $ 542. However, the gross margin decreased by 130 basic points to 44.2 percent, driven by lower product margins. The company reported a net loss of $ 7.4 million, or $ 0.06 per diluted action, the company said in a press release.
Stitch Fix reported an income increase year after year of 0.7 percent to $ 325 million in the third quarter of fiscal year 200, marking a return to growth. Despite this, active customers fell 10.6 percent to 2.35 million. Net income per customer increased 3.2 percent, while the gross margin fell to 44.2 percent. The company registered a loss of $ 7.4 million but maintained strong cash reserves. Its revenues of the fourth quarter and the whole year are expected to decrease.
The adjusted Ebitda stood at $ 11 million, with a margin of 3.4 percent, while the free cash flow was $ 16 million. Stitch Fix finished the quarter with $ 242.1 million in cash and without debt.
“Stitch Fix delivered strong results of the third quarter, marked by our general return to income growth year after year,” he said Matt Baer, CEO, stitch. “Our performance, which exceeded expectations, is the direct result of the strength of the proposal for stitching value and the disciplined execution of the team of our strategy. Now in the growth phase of our transformation, we are focused on consolidating our role as the retailer of choice for clothing and accessories by constantly delivering the most centered and customized purchase shopping experience.”
Looking to the future, Stitch Fix forecasts the income of the fourth quarter between $ 298 million and $ 303 million, 5.2–6.7 percent year after year, or plane when adjusted for the additional week in the fiscal year24. Net income of the whole year is expected to supply $ 1,254 –1,259 billion, 5.9–6.2 percent (or 4.3–4.7 percent in an adjusted base of 52 weeks). The company expects to finish the 2015 fiscal year with adjusted Ebitda between $ 43 million and $ 47 million and remain positive for the free cash flow.
Stitch Fix anticipates the gross margin of the whole year to land between 44 and 45 percent, and advertising expenses are at the upper end of 8-9 percent of the income.
Fiber2Fashion News Desk (KD)
