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Stitch Fix Announces Second Quarter Fiscal 2018 Financial Results

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SAN FRANCISCO, March 12, 2018 (GLOBE NEWSWIRE) -- Stitch Fix, Inc. (NASDAQ:SFIX), an online personal styling service, has released its financial results for its second quarter of fiscal year 2018 ended January 27, 2018 and posted a letter to its shareholders on its investor relations website.

"We're pleased to share strong results for our second quarter. We grew our active clients to 2.5 million, an increase of 588,000 and 31% year-over-year. We grew net revenue to $295.9 million, representing 24% year-over-year growth," said Stitch Fix founder and CEO, Katrina Lake. "This quarter also marked the fourth consecutive quarter that we grew net revenue in the range of 25% year-over-year. In addition to strong momentum across our men's and women's categories, we're excited about the potential of Extras, a new capability that allows us to serve more of our client's wardrobe, while increasing incremental revenue."

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 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, Chief Executive Officer and Founder of Stitch Fix, Paul Yee, Chief Financial Officer of Stitch Fix, and Mike Smith, 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. A live webcast will be accessible on Stitch Fix's investor relations website at investors.stitchfix.com.  Interested parties can also access the call by dialing (877) 857-6176 in the U.S. or (719) 457-2642 internationally, and entering conference code 8518439.

A telephonic replay will be available through Monday, March 19, 2018 at (888) 203-1112 or (719) 457-0820, passcode 8518439. An archive of the webcast conference call will be available shortly after the call ends at https://investors.stitchfix.com.

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 CEO and Founder, Katrina Lake, and employs more than 5,800 employees nationwide. Since our founding in 2011, we've helped millions of men and women discover and buy what they love through personalized shipments of apparel, shoes and accessories, hand-selected by Stitch Fix stylists and delivered to our client's homes.

 
Stitch Fix, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except share and per share amounts)
 
    January 27, 2018     July 29, 2017
Assets              
Current assets:              
Cash   $ 266,374     $ 110,608
Restricted cash           250
Inventory, net     80,094       67,592
Prepaid expenses and other current assets     11,653       19,312
Total current assets     358,121       197,762
Property and equipment, net     30,875       26,733
Deferred tax assets     14,493       19,991
Restricted cash, net of current portion     9,100       9,100
Other long-term assets     3,813       3,619
Total assets   $ 416,402     $ 257,205
Liabilities, Convertible Preferred Stock and Stockholders' Equity              
Current liabilities:              
Accounts payable   $ 55,145     $ 44,238
Accrued liabilities     51,077       46,363
Preferred stock warrant liability           26,679
Gift card liability     8,151       5,190
Deferred revenue     10,433       7,150
Other current liabilities     4,953       4,298
Total current liabilities     129,759       133,918
Deferred rent, net of current portion     10,752       11,781
Other long-term liabilities     4,794       7,423
Total liabilities     145,305       153,122
Commitments and contingencies              
Convertible preferred stock, $0.00002 par value – zero and 60,577,280 shares authorized as of
  January 27, 2018 and July 29, 2017, respectively; zero and 59,511,055 shares issued and
  outstanding as of January 27, 2018 and July 29, 2017, respectively; aggregate liquidation preference of $42,389 as of July 29, 2017
          42,222
Stockholders' equity:              
Preferred stock, $0.00002 par value – 20,000,000 and zero shares authorized as of
  January 27, 2018 and July 29, 2017, respectively; zero shares issued and outstanding
  as of January 27, 2018 and July 29, 2017
         
Class A common stock, $0.00002 par value – 2,000,000,000 and zero shares authorized as of
  January 27, 2018 and July 29, 2017, respectively; 9,175,557 and zero shares issued
  and outstanding as of January 27, 2018 and July 29, 2017, respectively
         
Class B common stock, $0.00002 par value – 100,000,000 shares authorized as of
  January 27, 2018 and July 29, 2017; 87,885,193 and 26,834,535 shares issued
  and outstanding as of January 27, 2018 and July 29, 2017, respectively (1)
    2       1
Additional paid-in capital     219,108       27,002
Retained earnings     51,987       34,858
Total stockholders' equity     271,097       61,861
Total liabilities, convertible preferred stock and stockholders' equity   $ 416,402     $ 257,205
(1) Shares authorized, issued and outstanding as of July 29, 2017 includes common stock prior to our initial public offering.
 


 
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 27,
2018
    January 28,
2017
    January 27,
2018
    January 28,
2017
 
Revenue, net   $ 295,906     $ 237,775     $ 591,469     $ 473,779  
Cost of goods sold     168,523       131,053       335,071       256,979  
Gross profit     127,383       106,722       256,398       216,800  
Selling, general and administrative expenses     111,771       105,835       231,242       189,385  
Operating income     15,612       887       25,156       27,415  
Remeasurement of preferred stock warrant liability     (1,614 )    
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