Stitch Fix, the on-demand fashion styling business, saw its shares quickly fall 6% following the bell on Monday, after missing earnings projections for its second-quarter release.
The company posted a diluted earnings per share of two cents. It also posted an adjusted earnings per share of seven cents. Analysts surveyed by Yahoo! Finance were hoping for six cents.
Revenue for the quarter surpassed expectations. The company brought in $295.9 million, 24% above last year and better than the $291.24 million Wall Street was predicting.
Stitch Fix says it now has 2.5 million clients, 31% growth from the same period last year.
The company also announced that it’s adding Kirsten Lynch, CMO of Vail Resorts, to its board of directors.
Stitch Fix allows users to order on-demand fashion boxes, using a mix of algorithms and human stylists for tailored recommendations.
Stitch Fix recently launched an undergarments business, viewing it as a growth opportunity. CEO Katrina Lake referenced the underwear category in the earnings release.
“In addition to strong momentum across our men’s and women’s categories, we’re excited about the potential of Extras, a new capability that allows us to serve more of our client’s wardrobe, while increasing incremental revenue.”
Stitch Fix went public last November, making 34-year-old CEO and co-founder Katrina Lake the youngest female to ever take a company public, according to the Nasdaq.
While it was a rocky launch by IPO standards, the company quickly turned this around and surged above $29 by mid-December. Stitch Fix shares closed Monday above $24.
Featured Image: Nasdaq