The Economy Excuse, Again 🙄

Stitch Fix $SFIX ( ▼ 5.69% ) plunged 15.95% in after-hours trading on Wednesday after the online personal styling service posted mixed financial results amid economic concerns.

Financials: Stitch Fix reported a loss of two cents per share, which was better than expected. Revenue was $324.4 million, which was in-line.

Details: The number of active clients fell to 2.277 million, a decrease of 1.4% quarter-over-quarter and a decrease of 1.4% year-over-year.

Outlook: Stitch Fix also posted a disappointing financial outlook for the next fiscal year, which the company attributed to a “challenging consumer environment.” Net revenue for the full year is expected to reach $1.310 billion to $1.360 billion, a range that reflects a revenue decline or little growth. In the current quarter, revenue is expected to decrease.

Early Bird’s Nest Egg Gains: Stitch Fix’s latest active-client decline is partly macro-driven, but the evidence suggests the larger issue is company-specific customer acquisition and the lingering effects of its multi-year turnaround.

Soft discretionary spending appears to have worsened an already fragile customer base rather than caused the problem outright.

Final Thoughts: In the past 12 months, Stitch Fix has lost half its value. The stock is a long way off from its all-time high during 2021.

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Notables

Notable Earnings Today: Darden Restaurants (NYSE: DRI), Costco Wholesale (Nasdaq: COST), BlackBerry (NYSE: BB), TD Synnex (NYSE: SNX), Legacy Education (NYSE American: LGCY), Scholastic (Nasdaq: SCHL).

Notable IPOs Today: Amaero Inc. Common Stock (Nasdaq: AMRO), ARC Group Securities Acquisition I Class A Ordinary Shares (Nasdaq: FJDI), Devonian Health Group Inc. (NYSE American: DHGR).

Notable Equity Crowdfunding Campaigns Ending Today: Oxeia Biopharma (StartEngine), Surge (Wefunder), Micrima (Crowdcube).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), United States Current Account (8:30 a.m. ET), Building Permits (8:30 a.m. ET), New Home Sales (10:00 a.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

Viking Therapeutics Sinks Due to New Offering

White h2o molecules or atoms, abstract clean , scientific, or medical structures.

Photo by D koi on Unsplash

Viking Therapeutics $VKTX ( ▲ 1.96% ) fell 8.38% in after-hours trading on Wednesday after the biotechnology company announced a new offering of common stock and convertible senior notes.

Details: The offering includes $200 million in common stock and $200 million in convertible senior notes due 2032. The company will use the proceeds from the offerings for the continued clinical development of different therapeutics.

Final Thoughts: The stock was up 17% this year, including a 23% gain in September after the company revealed good trial data for its obesity drug.

XRP Surrenders Recent Gains

The price of the cryptocurrency XRP $XRP ( ▼ 7.5% ) fell about 5% on Wednesday, giving up some recent gains it had in the past week.

Final Thoughts: XRP is up about 16% in the past week. While that’s a nice recovery, it is still down about 18% this year.

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