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Category: Stock Market and Stitch Fix (SFIX)
Date: 25 September 2020 Stock Price of Stitch Fix (SFIX): $25.47 We take a look at the 4th quarter earnings report of their 2020 fiscal year of Stitch Fix a leading online personal styling service available to men, women and kids. The group currently has 3.52 million active clients. Revenue for the 4th quarter came in at $443.4 million but the group reported a loss of -$44.5 million for the 4th quarter of their 2020 fiscal year.
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We’re particularly excited by the momentum of our direct buy offering. It’s still early days, but the ability to shop personalized items and outfits in our feed-based experience is clearly resonating with our clients said Stitch Fix founder and CEO Katrina Lake"
About Stitch Fix (SFIX)
Stitch Fix is the world’s leading online personal styling service. We combine data science and human judgment to deliver apparel, shoes, and accessories personalized to our clients’ unique tastes, lifestyles, and budgets. Our service is available for women, men, and kids, and designed to help all our clients look, feel, and be their best selves.
Since our founding in 2011, we have helped millions of men, women, and kids discover and buy what they love through personalized shipments of apparel, shoes, and accessories, hand-selected by Stitch Fix stylists and delivered to our clients’ homes. We call each of these shipments a Fix. Clients can choose to schedule automatic shipments or order a Fix on demand after they fill out a style profile on our website or mobile app. For each Fix, we charge clients a styling fee that is credited toward items they purchase. Alternatively, select U.S. clients may purchase an annual Style Pass, which offers unlimited styling for the year for a $49 fee that is also credited towards items they purchase. After receiving a Fix, our clients purchase the items they want to keep and return the other items, if any, at no additional charge. In addition, our Extras feature allows clients to select items such as socks, bras, underwear, and other intimates that are then added to the items their stylist selects for their Fix. Stitch Fix was founded with a focus on Women’s apparel. In our first few years, we were able to gain a deep understanding of our clients and merchandise and build the capability to listen to our clients, respond to feedback, and deliver the experience of personalization. More recently, we have extended those capabilities into Petite, Maternity, Men’s, Plus, and Kids apparel, as well as shoes and accessories.
Find out more About Stitch Fix here
Since our founding in 2011, we have helped millions of men, women, and kids discover and buy what they love through personalized shipments of apparel, shoes, and accessories, hand-selected by Stitch Fix stylists and delivered to our clients’ homes. We call each of these shipments a Fix. Clients can choose to schedule automatic shipments or order a Fix on demand after they fill out a style profile on our website or mobile app. For each Fix, we charge clients a styling fee that is credited toward items they purchase. Alternatively, select U.S. clients may purchase an annual Style Pass, which offers unlimited styling for the year for a $49 fee that is also credited towards items they purchase. After receiving a Fix, our clients purchase the items they want to keep and return the other items, if any, at no additional charge. In addition, our Extras feature allows clients to select items such as socks, bras, underwear, and other intimates that are then added to the items their stylist selects for their Fix. Stitch Fix was founded with a focus on Women’s apparel. In our first few years, we were able to gain a deep understanding of our clients and merchandise and build the capability to listen to our clients, respond to feedback, and deliver the experience of personalization. More recently, we have extended those capabilities into Petite, Maternity, Men’s, Plus, and Kids apparel, as well as shoes and accessories.
Find out more About Stitch Fix here
Growth in number of active clients of Stitch Fix over time
We grew active clients to 3.52 million, an increase of 8.8% year over year, and grew net revenue per active client by 6% year over year, our eighth consecutive quarter of growth and a reflection of our loyal and engaged client base
Growth in number of active of Stitch Fix over the last couple of years
Growth in Stitch Fix Revenue over time
The image above shows the year on year growth in Stitch Fix's revenue over the last number of years. Year on year their revenue for 2020 grew by 11% compared to 2019
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Growth in Stitch Fix Net Revenue per client
The image above shows the net revenues per active client over the last number of years. It also shows that net revenues per active client increased by 2% year on year
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Overview of Stitch Fix's 4th quarter 2020 earnings report
- Net Revenue: $443.4 million (down from $432.1 million for the same quarter of the previous year
- Revenue increased by 2.6% over the last 12 months
- Cost of sales: $244.298 million (up from $241.785 million for the same quarter of the previous year)
- Cost of sales increased by 1% over the last 12 months
- Net loss: -$43.254 million (down from $6.09 million for the same quarter of the previous year)
- Diluted loss per share: -$0.44 (down from $0.07 for the same quarter of the previous year)
- Diluted weighted-average shares outstanding: 103.2 million (down from 104.190 million for the same quarter of the previous year)
- Cash and cash equivalents: $143.455 million
- Cash and cash equivalents per share: $1.39
- Cash and cash equivalents makes up 5.4% of Stitch Fix's market capital
- Cash and cash equivalents makes up 18.6% of Stitch Fix's total assets
- Inventories: $124.846 million
- Inventories makes up 16.2% of Stitch Fix's total assets
- Stitch Fix inventories grew by 5.6% over the last 12 months. An indication that the group struggled to move stock during the last quarter due to Covid-19 related issues?
- Stockholders equity of Stitch Fix's: $401.037 million
- Stockholders equity per share for Stitch Fix $3.88
- So Stitch Fix's is trading at 6.56 times it stockholders equity per share which is well outside the expected range of between 2 and 4 times most companies tend to trade at.
- For some perspective the average price to book value that firms in the S&P 500 trade at is 3.7
Stitch Fix' management commentary on their 4th quarter 2020 earnigns
SAN FRANCISCO, Sept. 22, 2020 (GLOBE NEWSWIRE) -- Stitch Fix, Inc. (NASDAQ:SFIX), the leading online personal styling service, has released its financial results for the fourth quarter and full fiscal year 2020 ended August 1, 2020, and posted a letter to its shareholders on its investor relations website.
Fourth quarter highlights*
Fourth quarter highlights*
- Net revenue of $443.4 million, an increase of 11% year over year on an adjusted basis
- Active clients of 3.5 million, an increase of 9% year over year
- Net revenue per active client of $486, an increase of 2% year over year on an adjusted basis
- Net loss of $44.5 million
- Adjusted EBITDA ex. SBC of $11.8 million
- Diluted loss per share of $0.44
“I'm very pleased with our strong Q4 results and our return to topline growth. We grew active clients to 3.5 million, an increase of 9% year over year, and generated $443 million in net revenue, reflecting 11% adjusted year-over-year growth,” said Stitch Fix founder and CEO Katrina Lake. “I'm proud of our team for successfully navigating through the deepest impacts of COVID-19 and am excited to bring our model of an individual and deeply personalized shopping experience to even more consumers as they transition to a future of online shopping.”
Stitch Fix President Elizabeth Spaulding added, “We’re particularly excited by the momentum of our direct buy offering. It’s still early days, but the ability to shop personalized items and outfits in our feed-based experience is clearly resonating with our clients. Our styling algorithms combined with input from our talented stylists, and the network effects of nearly 10 years of shopping data are enabling clients to now shop via direct buy without ever having purchased something from us in the past. Encouraged by its early success, we plan to expand the offering to give existing clients more reasons to engage with us, and give new-to-Stitch Fix customers the opportunity to experience the magic of online personal styling through direct buy.”
Stitch Fix President Elizabeth Spaulding added, “We’re particularly excited by the momentum of our direct buy offering. It’s still early days, but the ability to shop personalized items and outfits in our feed-based experience is clearly resonating with our clients. Our styling algorithms combined with input from our talented stylists, and the network effects of nearly 10 years of shopping data are enabling clients to now shop via direct buy without ever having purchased something from us in the past. Encouraged by its early success, we plan to expand the offering to give existing clients more reasons to engage with us, and give new-to-Stitch Fix customers the opportunity to experience the magic of online personal styling through direct buy.”
Stitch Fix (NASDAQ: SFIX) stock price history
The image below, obtained from Google, shows the stock price history of Stitch Fix (NASDAQ:SFIX) since their listing. And it's been a very volatile and mildly successful time for Stitch stockholders. At their listing in November 2017 they were trading around $15.50 a stock and they are currently trading at $25.47 a stock. That is a return of 64.3% provided in basically the last two and a half years which is not to bad.
The stock of Stitch Fix is trading at closer to its 52 week high than it is to its 52 week low which to us is a clear indication that the short term sentiment and momentum of Stitch Fix is positive at this point in time.
The stock of Stitch Fix is trading at closer to its 52 week high than it is to its 52 week low which to us is a clear indication that the short term sentiment and momentum of Stitch Fix is positive at this point in time.
Stitch Fix (NASDAQ: SFIX) stock price since its listing
Recent coverage of Stitch Fix
The extract below shows the latest coverage of Stitch Fix as obtained from Fool.com
What happened
Shares of personalized online apparel company Stitch Fix (NASDAQ:SFIX) were slammed on Wednesday. The stock was down 17% as of 11:20 a.m. EDT.
The stock's decline followed the company's fiscal fourth-quarter results, which featured better-than-expected revenue but highlighted a much wider-than-anticipated loss per share.
So what
Stitch Fix reported fiscal fourth-quarter revenue of $443.4 million, up 11% year over year on an adjusted basis. On average, analysts were expecting revenue of $414.9 million. Perhaps explaining the market's bearish response to the report, Stitch Fix swung to a meaningful loss on its bottom line, reporting a loss per share of $0.44 -- worse than a profit of $0.07 in the year-ago period. Analysts, on average, were expecting a loss per share of $0.16.
Management seemed happy about the quarter and optimistic about the company's future. "I'm very pleased with our strong Q4 results and our return to topline growth," said Stitch Fix CEO Katrina Lake in a press release about the results. "We grew active clients to 3.5 million, an increase of 9% year over year."
Read the full article here
What happened
Shares of personalized online apparel company Stitch Fix (NASDAQ:SFIX) were slammed on Wednesday. The stock was down 17% as of 11:20 a.m. EDT.
The stock's decline followed the company's fiscal fourth-quarter results, which featured better-than-expected revenue but highlighted a much wider-than-anticipated loss per share.
So what
Stitch Fix reported fiscal fourth-quarter revenue of $443.4 million, up 11% year over year on an adjusted basis. On average, analysts were expecting revenue of $414.9 million. Perhaps explaining the market's bearish response to the report, Stitch Fix swung to a meaningful loss on its bottom line, reporting a loss per share of $0.44 -- worse than a profit of $0.07 in the year-ago period. Analysts, on average, were expecting a loss per share of $0.16.
Management seemed happy about the quarter and optimistic about the company's future. "I'm very pleased with our strong Q4 results and our return to topline growth," said Stitch Fix CEO Katrina Lake in a press release about the results. "We grew active clients to 3.5 million, an increase of 9% year over year."
Read the full article here
Stitch Fix delivery box accompanied by host of clothing and related items
Stitch Fix (SFIX) stock vs TJX (TJX) stock over the last 3 years
The image below shows the stock price performance of Stitch Fix (NASDAQ: SFIX) and TJX Companies (NYSE: TJX) over the last 3 years. The stock price trends of these two firms have been fairly similar since the start of 2020. The
Stitch Fix (NASDAQ: SFIX) stock price performance vs TJX Companies (NYSE: TJX) stock price performance over the last 3 years
Stitch Fix (NASDAQ: SFIX) latest stock valuation
So what is Stitch Fix (NASDAQ: SFIX) stock worth based on the release of their 4th quarter 2020 earnings report? Based on their earnings reported and the fact that they have been loss making for the second quarter in a row our valuation models provide a target price (full value price) for Stitch Fix of $21.30 a stock. We therefore believe that the stock is slightly overvalued at its current price of $25.47
We usually suggest long term investors look to enter a stock at least 10% below our target (full value) price which in this case is $21.30 So a good entry point into Stitch Fix stock would be at $19.20 or below. We expect the stock of Stitch Fix to pull back from current levels to levels closer to our target price in coming weeks and months.
We usually suggest long term investors look to enter a stock at least 10% below our target (full value) price which in this case is $21.30 So a good entry point into Stitch Fix stock would be at $19.20 or below. We expect the stock of Stitch Fix to pull back from current levels to levels closer to our target price in coming weeks and months.
Next earnings release of Stitch Fix
It is expected that Stitch Fix will release their 1st quarter 2021 in mid December 2020