Stitch Fix Shares Tumble After First Earnings Report
- Costs rise as personal styling service expands categories
- Company projects sales that would beat analysts’ estimates
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Stitch Fix Inc., the data-driven online personal-styling service, had its biggest decline since becoming a public company after reporting that it’s spending more money than analysts expected to expand into new apparel categories.
Expenses in the fiscal first quarter, which ended in October, rose 43 percent to $119.5 million on higher advertising and hiring costs, Stitch Fix said Tuesday in its first earnings report following a November initial public offering. Gross margins also narrowed from a year earlier, in large part due to new product lines for men and plus-sized women, the company said.