Stitch Fix, Inc. (SFIX) shares took a significant dip in after-hours trading following the release of the company’s fourth-quarter financial results. While revenue for the quarter came in slightly above analyst expectations, the company missed on earnings per share, disappointing investors.
Stitch Fix reported a quarterly loss of 29 cents per share, falling short of the analyst consensus estimate of a 19-cent loss. However, the company’s revenue of $319.6 million surpassed the anticipated $318.5 million, marking a 14.95% decline from the same period last year.
Despite the mixed results, CEO Matt Baer expressed confidence in Stitch Fix’s ongoing transformation strategy. “We are executing our transformation strategy with discipline and, during the fourth quarter, we delivered results at the high end of our guidance on both the top and bottom line,” he stated. Baer added, “I am proud of the Stitch Fix team’s efforts this past fiscal year and encouraged by the progress we have already made to strengthen the foundation of our business and reimagine our client experience. While there is a lot of work still to do, I am confident we are on the right path to continue to improve the trajectory of our business which includes returning to revenue growth by the end of FY26.”
Looking ahead, Stitch Fix expects first-quarter revenue to fall within a range of $303 million to $310 million. For the full fiscal year 2025, the company projects revenue to be between $1.11 billion and $1.16 billion.
Following the earnings announcement, SFIX shares plummeted by 19.15% in after-hours trading, closing at $3.07 per share. This sharp decline reflects investor concerns about the company’s profitability despite the revenue beat.
