All eyes have been on subscription-model e-tailer Stitch Fix since its $120 million IPO last month.
Adjusted earnings finished up at 4 cents per share during Q1, beating the 3 cents projected by Wall Street. Despite the increase, those figures dropped 71.4% year-over-year from last year’s 14 cents per share. Stitch Fix shares fell 11.2% to $22 upon the news.
Revenue also beat expectations, totaling $296 million in sales. Analysts polled by Reuters predicted sales of $295 million. The result equated to a 25% increase compared to last year.
Stitch Fix continues to grow its base with an active client count up to 2.4 million as of October 28, 2017, an increase of 549,000 or 29.7%.
Stitch Fix started targeting the luxury customer by adding 100 premium brands this year to its model, which features stylists and algorithms to select the right mix of 5 items per box or “fix.” Styling fee is $20 per box.
The company noted how it doesn’t follow the typical Christmas crush of boosted holiday sales. “Seasonality in our business does not follow that of traditional retailers, such as typical concentration of revenue in the holiday quarter,” the company said in a statement.
For Q2 expectations, Stitch Fix projects Q2 net revnue of $287-294 million, with a full-year 2018 net revenue projection of $1.17 billion to $1.22 billion.