Interviews
SAN FRANCISCO, March 11, 2019 (GLOBE NEWSWIRE) Stitch Fix, Inc. (NASDAQ:SFIX), the leading online personal styling service, has released its financial results for the second quarter of fiscal year 2019 ended January 26, 2019, and posted a letter to its shareholders on its investor relations website.
Second quarter highlights
“Q2 was another strong quarter for us, delivering net revenue of $370.3 million, exceeding our guidance and representing 25% year-over-year growth,” said Stitch Fix Founder and CEO Katrina Lake. “Since becoming a public company, we have posted six consecutive quarters of over 20% growth, which demonstrates our ability to drive consistent business performance. I’m proud that we’re now serving 3 million people across the U.S. and remain focused on delighting our existing clients and expanding our reach. We launched our first integrated brand campaign in February to increase awareness and consideration with new and existing clients and we’re excited to connect even more people to the power of personalized styling.”
Please visit the Stitch Fix investor relations website at https://investors.stitchfix.com to view the financial results included in the letter to shareholders. The Company intends to continue to make future announcements of material financial and other information through its investor relations website. The Company will also, from time to time, disclose this information through press releases, filings with the Securities and Exchange Commission, conference calls, or webcasts, as required by applicable law.
Conference Call and Webcast Information
Katrina Lake, Founder and Chief Executive Officer of Stitch Fix, Paul Yee, Chief Financial Officer of Stitch Fix, and Mike Smith, President and Chief Operating Officer of Stitch Fix, will host a conference call at 2:00 p.m. Pacific Time today to discuss the Company’s financial results and outlook.
About Stitch Fix, Inc.
Stitch Fix is reinventing the shopping experience by delivering one-to-one personalization to our clients, through the combination of data science and human judgment. Stitch Fix was founded in 2011 by Founder and CEO Katrina Lake. Since our founding, we’ve helped millions of men, women, and kids discover and buy what they love through personalized shipments of apparel, shoes, and accessories, hand-selected by Stitch Fix stylists and delivered to our clients’ homes.
|
Stitch Fix, Inc. Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share and per share amounts) |
||||||||
| January 26, 2019 | July 28, 2018 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 167,496 | $ | 297,516 | ||||
| Restricted cash | 250 | 250 | ||||||
| Short-term investments | 109,363 | — | ||||||
| Inventory, net | 103,167 | 85,092 | ||||||
| Prepaid expenses and other current assets | 33,160 | 34,148 | ||||||
| Total current assets | 413,436 | 417,006 | ||||||
| Long-term investments | 66,734 | — | ||||||
| Property and equipment, net | 44,888 | 34,169 | ||||||
| Deferred tax assets | 16,383 | 14,107 | ||||||
| Restricted cash, net of current portion | 12,600 | 12,600 | ||||||
| Other long-term assets | 3,010 | 3,703 | ||||||
| Total assets | $ | 557,051 | $ | 481,585 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 86,815 | $ | 79,782 | ||||
| Accrued liabilities | 66,080 | 43,037 | ||||||
| Gift card liability | 9,921 | 6,814 | ||||||
| Deferred revenue | 12,496 | 8,870 | ||||||
| Other current liabilities | 1,847 | 3,729 | ||||||
| Total current liabilities | 177,159 | 142,232 | ||||||
| Deferred rent, net of current portion | 16,420 | 15,288 | ||||||
| Other long-term liabilities | 10,183 | 8,993 | ||||||
| Total liabilities | 203,762 | 166,513 | ||||||
| Stockholders’ equity: | ||||||||
| Class A common stock, $0.00002 par value | 1 | 1 | ||||||
| Class B common stock, $0.00002 par value | 1 | 1 | ||||||
| Additional paid-in capital | 250,699 | 235,312 | ||||||
| Accumulated other comprehensive income | 141 | — | ||||||
| Retained earnings | 102,447 | 79,758 | ||||||
| Total stockholders’ equity | 353,289 | 315,072 | ||||||
| Total liabilities and stockholders’ equity | $ | 557,051 | $ | 481,585 | ||||
|
Stitch Fix, Inc. Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) (In thousands, except share and per share amounts) |
||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| January 26, 2019 | January 27, 2018 | January 26, 2019 | January 27, 2018 | |||||||||||||
| Revenue, net | $ | 370,280 | $ | 295,906 | $ | 736,516 | $ | 591,469 | ||||||||
| Cost of goods sold | 207,131 | 168,523 | 408,199 | 335,071 | ||||||||||||
| Gross profit | 163,149 | 127,383 | 328,317 | 256,398 | ||||||||||||
| Selling, general, and administrative expenses | 147,738 | 111,771 | 302,009 | 231,242 | ||||||||||||
| Operating income | 15,411 | 15,612 | 26,308 | 25,156 | ||||||||||||
| Remeasurement of preferred stock warrant liability | — | (1,614) | — | (10,685) | ||||||||||||
| Interest income | (1,170) | (18) | (2,569) | (35) | ||||||||||||
| Other income, net | (453) | — | (573) | — | ||||||||||||
| Income before income taxes | 17,034 | 17,244 | 29,450 | 35,876 | ||||||||||||
| Provision for income taxes | 5,058 | 13,603 | 6,796 | 18,747 | ||||||||||||
| Net income | $ | 11,976 | $ | 3,641 | $ | 22,654 | $ | 17,129 | ||||||||
| Other comprehensive income: | ||||||||||||||||
| Change in unrealized gain on available-for-sale securities, net of tax | 104 | — | 22 | — | ||||||||||||
| Foreign currency translation | 93 | — | $ | 119 | $ | — | ||||||||||
| Total other comprehensive income, net of tax | 197 | — | $ | 141 | $ | — | ||||||||||
| Comprehensive income | $ | 12,173 | $ | 3,641 | $ | 22,795 | $ | 17,129 | ||||||||
| Net income attributable to common stockholders: | ||||||||||||||||
| Basic | $ | 11,968 | $ | 3,036 | $ | 22,632 | $ | 9,794 | ||||||||
| Diluted | $ | 11,968 | $ | 1,653 | $ | 22,633 | $ | 3,530 | ||||||||
| Earnings per share attributable to common stockholders: | ||||||||||||||||
| Basic | $ | 0.12 | $ | 0.04 | $ | 0.23 | $ | 0.18 | ||||||||
| Diluted | $ | 0.12 | $ | 0.02 | $ | 0.22 | $ | 0.06 | ||||||||
| Weighted-average shares used to compute earnings per share attributable to common stockholders: | ||||||||||||||||
| Basic | 99,590,187 | 82,439,351 | 99,278,599 | 54,377,466 | ||||||||||||
| Diluted | 102,817,838 | 87,954,656 | 103,597,316 | 60,599,568 | ||||||||||||
