For the second quarter in a row, popular online clothing retailer Stitch Fix (SFIX) has reported an earnings triple play. Reporting after yesterday’s close, SFIX handily beat EPS estimates of -$0.03 with an actual EPS of $0.07. Revenues also came in at $409 million, $13.94 million above estimates. While the company has never struggled to beat estimates (has only missed revenues once and never missed EPS), SFIX is very volatile on earnings. On average, it has seen an absolute change of 20.19% on its earnings reaction day. In response to last night’s report, SFIX is sticking to that script with a gain of over 16%. Start a two-week free trial to Bespoke Institutional to access our interactive Earnings Expolorer and much more.
At today’s open, SFIX surged to gap up just over 24% to $29.23! Briefly afterward, it ran a little bit higher to just under $30. But like last quarter, so far in today’s session, these levels are not holding as the stock has been falling since the open, down to $27.73 as of this writing, but still a respectable 18% higher than last night’s close. Whereas the initial gap up brought SFIX through both the 50 and 200-DMA, today’s intraday selling has sent the price back down towards the 200-DMA and early May’s lower high, so it will be important for those levels to hold into the close. The next support level to watch after that will be the 50-DMA. Looking back at the stock’s reaction to its earnings report last quarter, it wasn’t very inspiring. After rising 25.2% in response to its last triple play, SFIX was never able to make a move higher with a series of lower highs and lower lows being made throughout the quarter. While it did not happen the same day as earnings, the 200-DMA and 50-DMA did not provide much support but instead acted more as resistance.