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Stitch Fix Stock Falls After Earnings

Stitch Fix reported its second earnings result since going public and, for the second time, the ecommerce firm reported a slight dip in its gross margin—this time to 43% from 44.9% a year earlier. Stitch Fix attributed the margin decline this quarter to expansion in new categories and sizing, as well as increased shipping costs. But the company says it expects a new feature called “extras,” through which people can add things like underwear and socks to their orders, to increase its incremental revenue and margins per order. It also recently created a “style pass,” an $49 annual membership fee people can pay instead of paying the $20 styling fee per order.

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