Stitch Fix Inc. on Thursday said that sales and users decreased in the third quarter, and confirmed a media report that it is laying off 15% of its salaried employees.
shares fell 10% in extended trading. They had decreased about 10.5% in the regular session to close at $7.78 after a news report about the layoffs. The San Francisco-based company said in its financial filing that the employee cuts amount to about 4% of its total workforce.
The company, 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 are 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
index is down about 15% so far this year.