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Stitch Fix Shares Rose After the Company Reported Fourth Quarter Earnings

Stitch Fix on Tuesday noticed that its shares jumped 14% in the extended trading session. The company noticed after the online shopping and styling service reported a surprise profit for its fiscal fourth quarter.Stitch Fix for the three months ended July 31 also came in higher than analysts were expecting, thanks to outsized growth in women’s and kids’ categories. The company said that Menswear has been growing more slowly.

Consumers have been trying on new outfits in recent months. Some have also cited the need for new clothes after either gaining or losing weight during the Covid pandemic. Net income attributable to shareholders was $28 million, or 19 cents per share, in the latest period.

Stitch Fix a year ago posted a net loss of $44.5 million, or 44 cents a share. Analysts had been looking for the company to book a loss of 13 cents per share.The company’s revenue grew to $571.2 million from $443.4 million a year earlier. That was better than analysts’ expectations for $548 million.

Stitch Fix reported nearly 4.2 million active clients, up 18% from a year earlier. Net revenue per active client was $505, surpassing the $500 threshold for the first time. Customers have been purchasing more items to keep at home, as they have more brands and price points to choose from. CEO Elizabeth Spaulding said this should help Stitch Fix grow its addressable market in the year ahead

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