Stitch Fix stock tumbled 24% in premarket trading

Stitch Fix stock tumbled 24% in premarket trading after issuing guidance below expectations.

The company, which sells clothing through subscriptions and more, reported a first-quarter net loss of $1.8 million, or 2 cents a share, compared with net income of $9.5 million, or 9 cents a share, in the year-ago period. Adjusted Ebitda was $38.2 million. Revenue rose to $581.2 million from $490.4 million in the year-ago quarter.

Analysts surveyed by FactSet had forecast a net loss of 14 cents a share on revenue of $570.8 million, and adjusted Ebitda of $17.5 million.

Stitch Fix expects second-quarter revenue of $505 million to $520 million, and adjusted Ebitda of between negative-$5 million and $5 million. Analysts had forecast a loss of 24 cents a share on revenue of $585 million, and adjusted Ebitda of $5.5 million.

The company also lowered its full-year 2022 guidance -- its fiscal year ends July 30 -- saying it expects revenue growth at a high single-digit rate and adjusted Ebitda margin to be between 1% and 2%.

Shares of Stitch Fix have declined nearly 57% year to date, while the S&P 500 Index has risen about 25% so far this year.

Stitch Fix downgraded to sector weight from overweight at KeyBanc Capital.