Company profile

Ticker
SFIX
Exchange
Employees
Incorporated in
Location
Fiscal year end
SEC CIK

SFIX stock data

(
)

Calendar

6 Jun 19
18 Jun 19
3 Aug 19

News

Company financial data Financial data

Quarter (USD) Apr 19 Jan 19 Oct 18 Jul 18
Revenue 408.89M 370.28M 366.24M
Net income 7.05M 11.98M 10.68M 18.28M
Diluted EPS 0.07 0.12 0.1 0.19
Net profit margin 1.72% 3.23% 2.92%
Operating income -4.57M 15.41M 10.9M 8.12M
Net change in cash -23.67M -5.85M -124.18M 10.26M
Cash on hand 143.83M 167.5M 173.34M 297.52M
Cost of revenue 224.45M 207.13M 201.07M 176.88M
Annual (USD) Jul 18 Jul 17 Jul 16
Revenue 1.23B 977.14M 730.31M
Net income 44.9M -594K 33.18M
Diluted EPS 0.34 -0.02 0.34
Net profit margin 3.66% -0.06% 4.54%
Operating income 43.02M 31.64M 64.23M
Net change in cash 186.91M
Cash on hand 297.52M 110.61M
Cost of revenue 690.48M 542.72M 407.06M

Financial data from Stitch Fix earnings reports

Financial report summary

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Risks
  • We have a short operating history in an evolving industry and, as a result, our past results may not be indicative of future operating performance.
  • If we fail to effectively manage our growth, our business, financial condition, and operating results could be harmed.
  • Our continued growth depends on attracting new clients.
  • We rely on consumer discretionary spending and may be adversely affected by economic downturns and other macroeconomic conditions or trends.
  • We expect to increase our paid marketing to help grow our business, but these efforts may not be successful or cost effective.
  • We may be unable to maintain a high level of engagement with our clients and increase their spending with us, which could harm our business, financial condition, or operating results.
  • Compromises of our data security could cause us to incur unexpected expenses and may materially harm our reputation and operating results.
  • Our industry is highly competitive and if we do not compete effectively our operating results could be adversely affected.
  • If we are unable to develop and introduce new merchandise offerings or expand into new markets in a timely and cost-effective manner, our business, financial condition, and operating results could be negatively impacted.
  • Expansion of our operations internationally will require management attention and resources, involves additional risks, and may be unsuccessful.
  • We may not be able to sustain our revenue growth rate and we may not be profitable in the future.
  • We must successfully gauge apparel trends and changing consumer preferences.
  • If we are unable to manage our inventory effectively, our operating results could be adversely affected.
  • Our business depends on a strong brand and we may not be able to maintain our brand and reputation.
  • If we fail to attract and retain key personnel, effectively manage succession, or hire, develop, and motivate our employees, our business, financial condition, and operating results could be adversely affected.
  • If we fail to effectively manage our stylists, our business, financial condition, and operating results could be adversely affected.
  • Our business, including our costs and supply chain, is subject to risks associated with sourcing, manufacturing, and warehousing.
  • If we are unable to acquire new merchandise vendors or retain existing merchandise vendors, our operating results may be harmed.
  • Any failure by us or our vendors to comply with product safety, labor, or other laws, or our standard vendor terms and conditions, or to provide safe factory conditions for our or their workers, may damage our reputation and brand, and harm our business.
  • We may incur significant losses from fraud.
  • We are subject to payment-related risks.
  • System interruptions that impair client access to our website or other performance failures in our technology infrastructure could damage our business.
  • Our use of personal information and other data subjects us to privacy laws and obligations, and our failure to comply with such obligations could harm our business.
  • Unfavorable changes or failure by us to comply with evolving internet and eCommerce regulations could substantially harm our business and operating results.
  • Material weaknesses in our internal control over financial reporting may cause us to fail to timely and accurately report our financial results or result in a material misstatement of our financial statements.
  • Shipping is a critical part of our business and any changes in our shipping arrangements or any interruptions in shipping could adversely affect our operating results.
  • Our operating results could be adversely affected by natural disasters, public health crises, political crises, or other catastrophic events.
  • If we cannot successfully protect our intellectual property, our business would suffer.
  • We may be accused of infringing intellectual property rights of third parties.
  • We could be required to collect additional sales taxes or be subject to other tax liabilities that may increase the costs our clients would have to pay for our offering and adversely affect our operating results.
  • We may be subject to additional tax liabilities, which could adversely affect our operating results.
  • Changes in U.S. tax or tariff policy regarding apparel produced in other countries could adversely affect our business.
  • We may require additional capital to support business growth, and this capital might not be available or may be available only by diluting existing stockholders.
  • Our failure to adequately and effectively staff our fulfillment centers, through third parties or with our own employees, could adversely affect our client experience and operating results.
  • Some of our software and systems contain open source software, which may pose particular risks to our proprietary applications.
  • Adverse litigation judgments or settlements resulting from legal proceedings in which we may be involved could expose us to monetary damages or limit our ability to operate our business.
  • If we are unable to make acquisitions and investments, or successfully integrate them into our business, our business could be harmed.
  • The market price of our Class A common stock may be volatile or may decline steeply or suddenly regardless of our operating performance and we may not be able to meet investor or analyst expectations. You may lose all or part of your investment.
  • Future sales of shares by existing stockholders could cause our stock price to decline.
  • The dual class structure of our common stock concentrates voting control with our directors, executive officers, and their affiliates, and may depress the trading price of our Class A common stock.
  • If securities or industry analysts either do not publish research about us or publish inaccurate or unfavorable research about us, our business, or our market, or if they change their recommendations regarding our common stock adversely, the trading price or trading volume of our Class A common stock could decline.
  • We do not currently intend to pay dividends on our Class A common stock and, consequently, your ability to achieve a return on your investment will depend on appreciation of the value of our Class A common stock.
  • Future securities sales and issuances could result in significant dilution to our stockholders and impair the market price of our Class A common stock.
  • The requirements of being a public company may strain our resources, result in more litigation, and divert management’s attention.
  • Delaware law and provisions in our amended and restated certificate of incorporation and amended and restated bylaws could make a merger, tender offer, or proxy contest difficult, thereby depressing the trading price of our Class A common stock.
  • Our amended and restated certificate of incorporation provides that the Court of Chancery of the State of Delaware and, to the extent enforceable, the federal district courts of the United States are the exclusive forums for substantially all disputes between us and our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers, or employees.
Management Discussion
  • Revenue increased by $92.2 million and $237.2 million, or 29.1% and 26.1%, during the three and nine months ended April 27, 2019, respectively, compared with the same periods last year. The increase in revenue was primarily attributable to a 16.6% increase in active clients from April 28, 2018, to April 27, 2019, which drove increased sales of merchandise, and an increase in revenue per active client.
  • Gross margin for the three and nine months ended April 27, 2019, increased by 1.5% and 1.4%, respectively, compared with the same periods last year. The increase for both periods was primarily attributable to a decrease in clearance expense due to improved inventory management and a reduction in shrink expense.
  • Selling, general, and administrative expenses increased by $60.6 million and $131.3 million for the three and nine months ended April 27, 2019, respectively, compared with the same periods last year. As a percentage of revenue, selling, general, and administrative expenses increased to 46.2% for the three months ended April 27, 2019, compared with 40.6% for the three months ended April 28, 2018, and increased to 42.9% for the nine months ended April 27, 2019, compared with 39.6% for the nine months ended April 28, 2018.
Content analysis ?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Good
New words: appoint, commenced, motion, plaintiff, stayed
Removed: acceleration, Bulletin, expensing, planned, prepaid, qualify, reverse, SAB, statute