It might not be such an easy fix for online apparel seller Stitch Fix Inc. (SFIX) - Get Report , which was falling more than 25.3% in trading Tuesday despite topping analysts' earnings estimates in its fiscal first quarter.
The subscription fashion service failed to meet the all-important active client growth numbers analysts were expecting for the period, with the company reaching 2.9 million active clients, just short of Wall Street expectations of 2.95 million.
The stock rose initially after-hours Monday on the top- and bottom-line beats, but the numbers underneath the surface sunk the company's stock Tuesday.
The company reported revenue of $366.2 million, yielding earnings of 10 cents a share share, topping analysts' 3 cents per share earnings estimate on revenue of $358 million.
"We continue to delight clients with our strong assortment by delivering access to the brands they love and new styles they're excited to discover," COO and president Mike Smith said. "All of our assortment investments are deeply rooted in direct feedback from clients, so we're confident they're going to love our new additions."
Additionally, the company provided second-quarter revenue guidance between $360 million and $368 million.