Yahoo Finance Stitch Fix (SFIX) to Report Q2 Earnings: What's in the Offing?
Stitch Fix, Inc. SFIX is expected to register a decrease in both its top and the bottom line from the year-ago fiscal quarter’s reported figure in its second-quarter fiscal 2023 earnings on Mar 7, after market close. The Zacks Consensus Estimate for quarterly revenues currently stands at $412 million, suggesting a 20.2% decrease from the year-ago fiscal quarter’s tally.
The Zacks Consensus Estimate for the fiscal first quarter’s loss is pegged at 33 cents, wider than the loss of 28 cents a share recorded in the year-earlier fiscal quarter. The consensus estimate has been stable over the past 30 days.
This online personal-styling service provider delivered a negative earnings surprise of 9.8% in the trailing four quarters, on average.
Factors at Play
Stitch Fix’s quarterly performance is likely to be hurt by a tough macroeconomic environment, including headwinds like global inflationary pressures and potential shifts in customer demand. These factors and any deleverage in selling, general and administrative expenses might have affected SFIX’s performance in the fiscal second quarter. Also, increased investments in the Freestyle drive and new channels are concerning.
On its last earnings call, management projected net revenues of $410-$420 million for the fiscal second quarter, indicating a decline of 19-21% from the year-ago fiscal quarter’s reported figure. Continued pressure on net active clients and the promotional holiday period might have hurt the metric. Stitch Fix estimated adjusted EBITDA in the bracket of a negative $5 million to a positive $5 million with a margin of minus 1% to plus 1%.
Stitch Fix has been expanding its digital capabilities and personalized shopping for a while to offer clients the best-in-class service. SFIX’s Freestyle drive offering quite a distinct shopping experience is encouraging. This platform enables customers to discover and buy curated items according to their style, preferences, fit and size.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Stitch Fix this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as elaborated below. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Stitch Fix, Inc. Price and EPS Surprise
Stitch Fix, Inc. price-eps-surprise | Stitch Fix, Inc. Quote
Stitch Fix currently has a Zacks Rank #2 and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are three companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this season:
Ulta Beauty ULTA currently has an Earnings ESP of +8.53% and a Zacks Rank #2. ULTA is likely to register a bottom-line improvement year over year when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $5.53 suggests an improvement of 2.2% from the year-ago fiscal quarter’s actuals.
Ulta Beauty's top line is expected to rise from the year-earlier fiscal quarter’s finals. The Zacks Consensus Estimate for quarterly revenues stands at $3.01 billion, implying an improvement of 10.3% from the figure reported in the prior-year fiscal quarter. ULTA has a trailing four-quarter earnings surprise of 26.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Casey's General Stores CASY currently has an Earnings ESP of +8.25% and a Zacks Rank #3. The company is likely to register a bottom-line decline when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $1.67 suggests a decline of 2.3% from the year-ago quarter.
Casey's top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.37 billion, which indicates an increase of 10.6% from the figure reported in the prior-year quarter. Casey's has a trailing four-quarter earnings surprise of 7.2%, on average.
Five Below FIVE currently has an Earnings ESP of +0.52% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of $3.06 suggests an increase of 22.9% from the year-ago quarter.
Five Below’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.11 billion, which suggests a rise of 10.9% from the figure reported in the prior-year quarter.
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Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
Five Below, Inc. (FIVE) : Free Stock Analysis Report
Stitch Fix, Inc. (SFIX) : Free Stock Analysis Report
