Please select the second broker

Author: Alan LittleDate: 2020-12-09

Stitch Fix (SFIX) soars 42% after posting fiscal Q1 profit

Stitch Fix (SFIX) shares skyrocketed 42.07% on Tuesday after the online personal styling service posted a surprise fiscal Q1 profit and analysts lined up to offer price target upgrades.

After Monday’s close, Stitch Fix came in with nine cents per share net income, which was considerably better than the net loss of 20 cents per share forecast by Wall Street.

Revenue for the three months to 31st October also climbed 10% to $490.4m to beat the pre-report consensus of $481.17m.

Since its $1.6bn IPO back in 2017, Stitch Fix has been steadily growing its customer base around its core offering of personalising clothing via algorithms and data science.

CEO and founder Katrina Lake said that Q1 saw its highest sequential client addition ever.

Stitch Fix had 3.76 million active clients during the quarter and the average net revenue for each of those was $467.

Lake added: “Our powerful personalization engine is evolving, and innovations in our Fix and direct buy offerings will expand our addressable market, deepen client engagement and grow wallet share over time.”

Stitch Fix’s rebound to a profit pleased investors and analysts alike on Tuesday with the latter ratifying a string of price target upgrades.

RBC Capital Markets’ Mark Mahaney expects Stitch Fix to continue to benefit from the recent surge in online shopping after adding $14 to a new $64 PT and reiterating an outperform rating.

Those sentiments were echoed by Goldman Sachs’ Heath Terry, who pivoted from a $34 to $58 PT.

The bullish outlook for Stitch Fix translated into huge share gains on Tuesday.

The San Francisco-based company soared out of the gate and was trading 42.07% higher at $50.91 at around 2pm ET on the Nasdaq.

Sources:

  • https://bit.ly/3a7Uk2T
  • https://bit.ly/3oEAFey
  • https://bit.ly/2K78u9r
  • https://bit.ly/3n1lz2B

 

Scam Brokers, Broker Complaints

Are you aware of a scam broker or want to make a broker complaint?

We want our site users to find good brokers to trade through and to be warned off bad brokers. We encourage you to use our complaints tool to let us know about your experiences.

We have categorised the common complaints to make it easier for you and we have provided some guidance on what you may want to try before submitting a complaint, if our suggestions do not provide you with a resolution then by submitting a complaint, our team will attempt to take up your case with the relevant Broker and if needed, submit a formal report to the regulators.

We use the information you give us to decide if we want to continue to promote a broker on our site.

Your scam broker complaint not only helps you, it helps others and it helps us determine if we continue to support the broker.