Stitch Fix Inc. (NYSE: SFIX) has confirmed that it will release its Q1 2022 earnings on Tuesday, December 7, 2021, after market close.
What to look for
The company is expected to release earnings in 13 days, and analysts were holding for a loss compared to a net profit a year ago. The online personalized apparel retailer's shares tend to show volatility following the earnings release. Notably, Stitch Fix's post-earnings stock move has been in double digits in the past three quarters.
Earnings: Stockearning’s Estimated EPS for the current quarter under review will be a loss of $0.13 per share. The company reported a net income of $28 million or $0.19 per share in the last quarter, topping estimates of $0.13 per share. Historical EPS performance shows that the company.
Revenue: For fiscal Q1 2022, the company expects sales of $560 million to $575 million short of analysts’ estimates of $588 million. For the upcoming fiscal year, the company expects sales to increase more than 15%. In the fourth quarter, the company reported revenue of $571.2 million, attributed to an increase in active clients by 18%.
Stock movement: Since the last earnings release, Stitch Fix stock has lost 019.7%. Stitch Fix shares have been DOWN 8 times out of the past 15 quarters after the earnings release. So, the historical price reaction suggests a 53% probability of the share price going UP once Stitch Fix releases earnings. According to the Stockearning algorithm, the predicted first-day move is 19%, while the predicted move on the seventh day is 23%.
What analysts are saying
Canaccord analyst Maria Ripps lowered her price target on the stock from $76 to $65 but maintained a "Buy" rating in Stitch Fix shares. The analyst told investors that the company had strong Q4 results capping a year in which the company exceeded $2 billion of annual revenue amid platform expansion and CEO transition. Maria expects the continued shopping formats expansion and inventory diversification to bolster top-line growth in the coming quarters.
Also, KeyBanc analyst Edward Yruma lowered the company’s target price from $75 to $70 and maintained a “Buy” rating on the stock. Yruma feels that the launch of the company's Freestyle drives considerable expansion in TAM, which will offer long-term margins lift. Initiatives to boost growth will persist going forward, but secular shifts accelerations and near-term cyclical uplift underpin the analyst's confidence.
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