By Yasin Ebrahim
Investing.com — Stitch Fix plunged Tuesday in aftermarket hours after reporting worse than feared results and delivering an underwhelming outlook that suggests the weaker macroeconomic environment will continue to hold back retail spending.
Stitch Fix (NASDAQ:) was down more than 6% in after-market hours.
The company a loss of 89 cents a share, compared with earnings of 19 cents a year ago, on revenue of $481.9 million. That compared with estimates for a loss of 63 cents, on revenue of $488.8 million.
Active clients fell 9% to 3.8 million on the prior-year period.
The fall in clients comes as the “weaker macroeconomic environment and its impact on retail spending has been a challenge to navigate,” Stitch Fix said, but added that it remains “committed to working through our transformation and returning to profitability.”
Looking ahead, the company forecast fiscal first quarter revenue of $455 to $465 million, below consensus of $524.5 million.
For 2023, revenue was expected to be between $1.76 billion and $1.86 billion.