=Stitch Fix (SFIX) reported earnings on Mon 11 March 19 (a/h)

Stitch Fix beats by $0.07, beats on revs; guides Q3 revs above consensus, EBITDA below; raises FY19 EBITDA and revenue guidance

• Reports Q2 (Jan) earnings of $0.12 per share, $0.07 better than the S&P Capital IQ Consensus of $0.05; revenues rose 25.0% year/year to $370 mln vs the $364.86 mln S&P Capital IQ Consensus.
• Co issues upside guidance for Q3, sees Q3 revs of $388-398 mln vs. $384.44 mln S&P Capital IQ Consensus; EBITDA ($4)-1M; expect net revenue growth to be driven through a combination of active client and revenue per active client growth for the second half of fiscal 2019. anticipate Q3'19 brand marketing investments associated with our campaign launch to represent between $15-20 million. This spend is incremental to our performance marketing efforts and is not expected to drive intra-quarter client additions. We expect this brand investment, in addition to our ongoing U.K. costs, to drive the projected adjusted EBITDA loss in Q3'19 implied by the midpoint of our range. Excluding this incremental spend, we anticipate Q3'19 adjusted EBITDA would be positive. We expect to return to adjusted EBITDA profitability in Q4'19.
• Co issues upside guidance for FY19, sees FY19 revs of $1.53-1.56 bln from $1.49-1.53 bln vs. $1.51 bln S&P Capital IQ Consensus; EBITDA $33-43 mln from $20-40 mln