=Stitch Fix (SFIX) reported earnings on Mon 1 Oct 2018 (a/h)

Stitch Fix shares crater as revenue, active clients miss estimates

• Stitch Fix said active clients rose 25 percent to 2.7 million from a year ago, but that was short of analysts' estimates.
• Fiscal fourth-quarter revenue climbed 23 percent to $318.3 million, but also missed analysts' estimates.
• The online personal styling service also announced its expansion into the U.K.

Stitch Fix SFIX shares tanked on Monday after the bell when the company reported active customers and quarterly revenue that fell short of analysts' estimates.

Its shares were last down more than 18 percent on the news, following a huge run-up so far this year. As of Monday's market close, Stitch Fix shares have climbed more than 70 percent in 2018. The online styling service just went public last November.

Stitch Fix said active clients grew 25 percent from a year ago to 2.7 million by the end of the fiscal fourth quarter, while analysts were calling for 2.81 million, according to StreetAccount.

Revenue climbed 23 percent to $318.3 million, short of the $319 million that analysts were expecting, based on a survey by Thomson Reuters.

The company earned 18 cents a share, 14 cents better than analysts' expectations.

Stitch Fix also on Monday announced its expansion into the U.K., which is expected to happen by the end of next year.

"We believe our ability to create a uniquely personalized shopping experience is something that will resonate with consumers and brands outside of the U.S.," CEO Katrina Lake said in a statement.

Stitch Fix Founder/CEO Katrina Lake appears on CNBC 

• Revenue came in at the high end of the company's expectations while earnings (EBITDA) were above guidance.
• Not as reliant on the holiday season as most retailers.
• Excited about UK launch; encouraged by maturity/growth in men's business
• Focused on increasing rev per client.

SFIX getting pummeled after Q4 results and guidance failed to impress investors last night. The stock was up 73% year-to-date heading into the print and now trades at ~2.2x FY19 sales after the 30% haircut. Bulls find that valuation attractive while Bears are more focused on the 100x EBITDA multiple in a competitive apparel retail/eCommerce market.