Stitch Fix stock tanks 20% in extended trading: what happened?

Stitch Fix Inc (NASDAQ: SFIX) on Tuesday reported better-than-expected results for its fiscal second quarter. The stock still tanked 20% as the U.S. company gave dovish sales guidance for Q3.

Notable figures in Stitch Fix Q2 earnings report

• Lost $30.9 million in Q4 versus the year-ago figure of $21 million.
• Per-share loss stood at 28 cents compared to last year’s 20 cents.
• At $517 million, revenue was up 3.0% YoY, as per the earnings press release.
• FactSet consensus was for 31 cents of per-share loss on $515 million in sales.
• Active clients grew 4.0%, helping an 18% increase in net revenue per active client.

Stitch Fix guidance for the current quarter

For fiscal Q3, Stitch Fix forecasts its revenue to fall in the range of $485 million to $500 million that represents up to 10% year-over-year decline. In comparison, analysts had called for $559 million in revenue this quarter. In the earnings press release, CEO Elizabeth Spaulding said:

The stock has more than halved in 2022 to date.