Here is why Stitch Fix Inc. (SFIX) stock soared in the after-hours on Tuesday?

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TMDI stock
TMDI stock

Stitch Fix Inc. (SFIX) shares soared 16.61% in after-hours on Tuesday, September 21, 2021, and closed the daily trading at $41.35. however, in the regular trading session of Tuesday, SFIX’s stock lost 2.50%. SFIX shares have risen 22.02% over the last 12 months, and they have moved down 0.64% in the past week. Over the past three months, the stock has lost 43.62%, while over the past six months, it has declined 29.84%.

Let’s have a brief discussion about its latest developments.


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SFIX latest financial results announcement

On September 21, 2021, Stitch Fix, Inc (SFIX), released its financial results for the fourth quarter and full fiscal year 2021 ended July 31, 2021.

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Q4 2021 financial highlights

  • SFIX reported total revenue of $571.2 million in Q4 2021 compared to $443.4 million in Q4 2020.
  • It earned a net income of 5 million and diluted earnings per share of $0.19 in Q4 2021 compared to $44.5 million and diluted earnings per share of $0.44 in Q4 2020.
  • In Q4 2021, Adjusted EBITDA was $55.4 million compared to $11.8 million in Q4 2020.

FY 2021 financial highlights

  • The company earned record revenue of $2.1 billion in FY 21 compared to $ 1.71 billion in FY 2020.
  • It suffered a net loss of 8.9 million and a diluted loss per share of $0.08 in FY 2021 compared to a net loss of $67.1 million and a diluted loss per share of $0.66 in FY 2020.
  • Adjusted EBITDA was $64.9 million in FY 2021, compared to $38.43 million in FY 2021.

SFIX financial outlook for Q1 2022

For Q1, 2022, the company is expecting

  • Net revenue in the range of $560 million – $575 million.
  • Adjusted EBITDA in the range of $15 million – $20 million.

Launch of Stitch Fix Freestyle

On September 21, 2021, Stitch Fix, Inc (SFIX) launched Stitch Fix Freestyle– a differentiated shopping experience, where anyone can discover and instantly buy items that are thoughtfully curated for them based on their style preferences, fit and size.

At the launch CEO of Stitch Fix, Elizabeth Spaulding said that after a decade head-start in personalization, the company is reimagining the future of e-commerce, with the consumer at the centre of it. She further added that the introduction of Stitch Fix Freestyle delivers truly personalized shopping, envisioned for today’s consumer, who wants a highly curated and personal experience.

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Conclusion

The company first time cross the $2 billion revenue mark which was the reason behind its after-hours gains on Tuesday. It can continue to perform well in the coming trading sessions as well.

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