Stitch Fix Shares Slide 20% Amid Growing Concerns About Amazon Competition
Stitch Fix stock lost a fifth of its value after the company reported quarterly earnings that beat analyst estimates but revenue that fell slightly short of projections. The results weren’t strong enough to ease investor concerns about the company’s ability to take on Amazon. Stitch Fix, a subscription-based personal shopping service, initially saw its stock tick up on the earnings beat before plunging 20% to $35.02 a share, its lowest price in more than a month. The company reported revenue of $318.3 million in its fiscal fourth quarter ended July 28, an increase of 23% from the same quarter a year ago. Analysts had been expecting revenue of $318.6 million. Stitch Fix also said active clients rose 25% to 2.7 million, which was below a forecast of 2.81 million clients from StreetAccount. Read more at Fortune.