Stitch Fix (SFIX) - Get Report tumbled sharply Wednesday after the online clothing retailer beat fiscal fourth-quarter earnings expectations but issued a weaker-than-expected revenue forecast for the first quarter.

For the fourth quarter ended Aug. 3, the San Francisco online personal styling service earned 7 cents a share on revenue of $432 million vs. analysts' expectations for earnings of 4 cents on revenue of $432 million.

Stitch Fix said active clients during the quarter rose 18% to 3.2 million.

Stitch Fix said it expects first-quarter revenue of $438 million to $442 million vs. Wall Street expectations of $451.3 million. The company said it expects adjusted Ebitda of $6 million to $9 million.

For fiscal 2020, Stitch Fix predicted revenue of $1.9 billion to $1.93 billion vs. estimates of $1.91 billion.

"We've planned Q1'20 softer than our full-year growth for two reasons," Stitch Fix said in a shareholder letter. "First, we've had greater success this year with summer products that carry lower average unit retails and average order values. Second, we spent less on marketing in late Q4 '19, which meant we had fewer clients to contribute to revenue at the start of Q1 '20."

SunTrust analyst Youssef Squali trimmed his price target on Stitch Fix to $36 from $44 but maintained his buy rating on the shares. Squali is upbeat on the company's "material market share gains, product innovation, positive payback on ad spend, and growing operating efficiencies."

Stitch Fix shares fell 15% to $17.04 in trading Wednesday.

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