Stitch Fix (NASDAQ:SFIX), which bills itself as an online personal styling service, fell short of Wall Street’s revenue target and reported a slowdown in clients, but whizzed past the Street’s profit target for the fiscal fourth quarter as it announced its expansion to the UK.
The results failed to impress investors, however, who sent Stich Fix shares down a whopping 15% to $36.65 after the bell on Monday.
The San Francisco-based company reported net income of $18.3 million or earnings per share of $0.18, which crushed the Street’s forecast of $0.04 per share. Its revenue, meanwhile, came in at $318.3 million, which just fell short of the consensus estimate of $318.6 million.
READ: IZEA Worldwide welcomes major US retailer to its online marketing platform
The personal styling service saw its active clients jump 25% from last year to 2.7 million by the end of the fiscal fourth quarter, which missed analysts’ projections of 2.8 million clients.
Buoyed by its success selling an array of clothing in the US under the Stitch Fix brand, the company is now looking to expand to the UK at the end of fiscal 2019.
“We are pleased to announce our expansion into the UK by the end of fiscal year 2019,” Stitch Fix founder and CEO Katrina Lake said. “We believe our ability to create a uniquely personalized shopping experience is something that will resonate with consumer and brands outside of the US. We can’t wait to show our first UK clients how effortless, convenient and fun Stitch Fix is.”
Set up in 2011, Stitch Fix aims to reinvent shopping experiences by delivering one-to-one personalization to its clients via its data science as well as ordinary judgement. The company offers an array of clothing and accessories for men and women under the Stitch Fix brand.