Why Stitch Fix Popped and Dropped on Wednesday
Shares of Stitch Fix (NASDAQ: SFIX) were all over the map on Wednesday, climbing as much as 16.3% in early trading, dropping 6.8%, and now trading up 0.5% at noon EST. Fiscal first-quarter earnings were reported after the market closed on Tuesday, and investors don't quite know what to do with this stock.
Revenue fell 22% in the quarter to $455.6 million, and the net loss was $55.9 million, or $0.50 per share. Guidance for the fiscal second quarter, which would include the holiday season, is for $410 million to $420 million in revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of negative $5 million to positive $5 million.
If you squint, financials are expected to get slightly better given the $7.4 million adjusted EBITDA loss in the fiscal first quarter. But the company will still be losing money, and there's no clear turnaround in sight.
Source Fool.com
