Stitch Fix stock soars on surprise profit

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Stitch Fix (SFIX.US) stock opened with a huge bullish gap today following the release of the firm’s fiscal first quarter results. An online apparel retailer managed to beat analysts’ estimates.

The company reported earnings of 9 cents a share for the first fiscal quarter, which ends October 31. Analysts surveyed by FactSet expected a net loss of 20 cents a share. Firm’s revenue jumped 10% to $490.4 million - the figure topped estimates as well. Company’s active client count rose to nearly 3.8 million (10% YoY growth).

"We're excited about the momentum in our business, confident in the future ahead, and we expect to deliver between 20% and 25% growth for the full year,” said the company’s CEO. Apart from that, the firm hired a new CFO who used to be a VP at Amazon.

Stitch Fix shares have been trading in an upward channel for the past few months. Price surged nearly 50% today on upbeat fiscal Q1 results. Source: xStation5

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