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Stitch Fix's post-IPO earnings fail to impress

Via Stitch Fix

Apparel subscription service Stitch Fix saw its stock price plunge 12% in aftermarket trading on Tuesday, even though its first post-IPO earnings included a $296 million revenue mark that was in line with analyst expectations.

Bottom line: Traders seem turned off by increased ad spend, which climbed 84% year-over-year and represented 9.5% of net revenue (compared to 6.5% during the year-earlier period).