Stitch Fix Inc. on Thursday reported a decrease in sales and users, and confirmed a media report that it is laying off 15% of its salaried employees.
Stitch Fix SFIX, -10.47% shares fell more than 15% in extended trading after decreasing about 10.5% in the regular session to close at $ 7.78 — an all-time closing low — following a news report about the layoffs. Stitch Fix shares have never traded for lower than $ 6.71 in a regular trading session, but shares traded for lower than that in after-hours trading following the results Thursday.
The San Francisco-based company said in its financial filing that the employee cuts amount to about 4% of its total workforce. Stitch Fix, which provides online clothing subscriptions and styling services, said it had 200,000 fewer clients year over year, with a total of 3.9 million in the third quarter. Analysts had expected almost 3.99 million clients for the quarter.
Stitch Fix reported a third-quarter net loss of $ 78 million, or 72 cents a share, compared with a loss of $ 18.8 million, or 18 cents a share, in the year-ago period. Revenue decreased to $ 492.9 million from $ 535.6 million in the year-ago quarter.
Analysts surveyed by FactSet had forecast an adjusted net loss of 56 cents a share on revenue of $ 493.3 million.
Stitch Fix expects fourth-quarter revenue of $ 485 million to $ 495 million. Analysts were forecasting a net loss of 50 cents a share on revenue of $ 494.1 million.
Shares of Stitch Fix have fallen almost 59% year to date. Meanwhile, the S&P 500 SPX, -2.38% index is down about 15% so far this year.