Stitch Fix swings to a surprise profit in the fiscal first quarter

Stitch Fix Inc. (NASDAQ: SFIX) said on Monday that it swung to a surprise profit in the fiscal first quarter. The company also announced its new CFO on Monday who has previously served at Amazon.

Stitch Fix was reported more than 30% up in extended trading on Monday. Including the price action, its stock is now exchanging hands at £35.86 per share versus a much lower £18.78 per share at the start of the year. Stitch Fix had tanked to £8.59 per share in the first week of April due to the Coronavirus disruptions.

Stitch Fix Q1 financial results versus analysts’ estimates

Stitch Fix said that its earnings in the first quarter printed at £7.12 million that translates to 6.74 pence per share. The U.S. company had broken even in the same quarter last year. In terms of sales, Stitch Fix reported £367.52 million in Q1 versus the year-ago figure of a lower £333.50 million.

According to FactSet, experts had forecast the company to register £360.48 million of sales in the recent quarter. They had also estimated Stitch Fix to see 11.99 pence per share of loss in Q1. In separate news from the U.S., Coupa Software also published a forecast-beating earnings report for the fiscal third quarter on Monday.

CEO Katrina Lake of Stitch Fix expressed confidence on Monday that the company’s full-year growth will fall in the range of 20% to 25%. She said:

“This quarter, we are proud to have achieved several multiyear highs, including our highest sequential client addition on record and the highest level of successful first Fixes in the past five years.”

Stitch Fix names Dan Jedda as its new CFO

Stitch Fix named Dan Jedda as its new Chief Financial Officer on Monday. Jedda has previously served Amazon Inc. for 15 years. He was currently serving as the CFO and Vice President of the tech giant’s digital video and music division. As per CEO Lake:

“Dan bring extensive experience funding and scaling some of the most innovative businesses at Amazon. Dan will play a critical role in helping us expand our personalisation platform to deliver the most relevant, resonant and delightful shopping experiences to consumers everywhere.”

Stitch Fix performed largely upbeat in the stock market last year with an annual gain of close to 45%. At the time of writing, it has a market capitalisation of £2.81 billion.