Stitch Fix Falls After Cutting Annual Sales, Profit Forecast
- Personal styling service cites lower order value, rising costs
- Company says coronavirus ‘dynamic’ issue that may have impact
This article is for subscribers only.
Stitch Fix Inc. plunged almost 40% in extended trading after the online personal styling service cut its full-year sales and profit forecast on lower order values, rising costs and the potential impact of coronavirus.
The company said fiscal 2020 net revenue will be $1.8 billion to $1.84 billion, from a previous projection of $1.9 billion to $1.93 billion, and below analysts’ estimates of $1.92 billion. Annual adjusted earnings before interest, taxes, depreciation and amortization will be zero to $10 million, the company said, from an earlier estimate of $18 million to $32 million.