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Disney smashes streaming subscriber expectations, boosting segments hurt by Covid

Disney said it now has almost 95 million paid subscribers to its Disney+ streaming service, helping to offset losses in other segments affected by the pandemic.

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Disney reported strong growth in paid streaming subscribers and its first quarterly profit since early last year in its earnings report for its fiscal first quarter of 2021 after the bell Thursday.

The stock was up around 1.7% after hours.

Here are the key numbers:

  • Earnings per share: 32 cents adjusted vs. loss of 41 cents expected, according to Refinitiv
  • Revenue: $16.25 billion vs. $15.9 billion expected, according to Refinitiv

Here’s how the rest of the report went for Disney.

Streaming

Disney said it now has almost 95 million paid subscribers to its Disney+ streaming service as of the quarter ended Jan. 2. This comes during the first quarter after Disney’s free-trial period ended for some subscribers who are also Verizon customers.

Disney CFO Christine McCarthy told analysts on the company’s earnings call that executives are “really happy with the conversion numbers that we’ve seen there going from the promotion to become paid subscribers.”

Average monthly revenue per paid Disney+ subscriber, however, dipped 28% compared with the same quarter last year, from $5.56 to $4.03. That’s because this number now includes subscribers to Disney+ Hotstar, which launched in India and Indonesia last year. The service has lower average monthly revenue per paid subscriber than traditional Disney+ in other markets, pulling down the overall average for the quarter.

On Disney’s earnings call, McCarthy said that excluding Hotstar, average revenue per paid Disney+ subscriber would have been $5.37 in the quarter.

Average monthly revenue per paid subscriber grew slightly for Disney’s other direct-to-consumer platforms, ESPN+ and Hulu, with the latter seeing 26% growth for those using its live TV service.

The company said it now has more than 146 million total paid subscribers across its streaming services as of the end of the first quarter.

Revenue for Disney’s direct-to-consumer business grew 73% compared with the same quarter the previous year, to $3.5 billion. That growth helped to offset losses in other segments affected by the pandemic.

Parks

Revenue at Disney’s parks, experiences and products segment fell 53% to $3.58 billion, as many of its theme parks were either closed or operating at reduced capacity and its cruise ships and guided tours were suspended.

CEO Bob Chapek told analysts on the company earnings call that outlook for parks revenue and reopening is “really going to be determined by the rate of vaccination of the public.” Disneyland is hosting a vaccination site for Californians, and Chapek said the site has so far delivered more than 100,000 doses.

Chapek said he expects any reopening or increase in visitor capacity will include masking and social distance measures through the end of the year. But he said Dr. Anthony Fauci’s prediction earlier Thursday that the vaccine would begin to be available to anyone who wants one in April would be a “game changer.”

The company said the Covid-19 outbreak cost this division around $2.6 billion in lost operating income during the fiscal first quarter.

Content sales and licensing revenues decreased 56% to $1.7 billion during the quarter, as Disney had no new theatrical releases during October, November and December and limited home entertainment releases.

Notably, last year, the studio released “Frozen II” in theaters and had “Toy Story 4,” “The Lion King” and “Aladdin” hit the home video market.

Disney expects capital expenditures for fiscal year 2021 to be similar to those for 2020, with the business investing more in the media and entertainment segment and less in the parks segment.

Disclosure: NBCUniversal is the parent company of Universal Studios and CNBC.

Correction: An earlier version of this story misstated remarks from Christine McCarthy, the company’s chief financial officer, regarding Disney’s plans to disclose future subscriber numbers for Disney+. The company does in fact plan to provide subscriber number updates as of the end of each quarter going forward. It might not provide additional updates on subscriber numbers as of the dates of earnings calls.

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Here’s how the rest of the report went for Disney.

Source: https://www.cnbc.com/2021/02/11/disney-dis-q1-2021-earnings.html

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Source: https://www.cnbc.com/earnings/

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Stitch Fix shares surge as online styling service reports surprise profit

Stitch Fix shares jumped after the online shopping and styling service reported a surprise profit for its fiscal fourth quarter.

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The Stitch Fix application for download in the Apple App Store on a smartphone arranged in Hastings-on-Hudson, New York, U.S., on Saturday, June 5, 2021. Stitch Fix Inc. is scheduled to release earning on June 7.

Tiffany Hagler-Geard | Bloomberg | Getty Images

Stitch Fix shares jumped 14% in extended trading Tuesday after the online shopping and styling service reported a surprise profit for its fiscal fourth quarter.

Sales for the three-month period ended July 31 also came in higher than analysts were expecting, thanks to outsized growth in Stitch Fix’s women’s and kids’ categories. Menswear has been growing more slowly, the company said.

Consumers have been splurging on new outfits in recent months, as many head back to school and return to social gatherings. Some have also citied the need for new clothes after either gaining or losing weight during the Covid pandemic.

Here’s how Stitch Fix did compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: 19 cents vs. a loss of 13 cents expected
  • Revenue: $571.2 million vs. $548 million expected

Net income attributable to shareholders was $28 million, or 19 cents per share, in the latest period. A year ago, it posted a net loss of $44.5 million, or 44 cents a share. Analysts had been looking for the company to book a loss of 13 cents per share.

Revenue grew to $571.2 million from $443.4 million a year earlier. That was better than analysts’ expectations for $548 million.

Stitch Fix reported nearly 4.2 million active clients, up 18% from a year earlier. The company said net revenue per active client was $505, surpassing the $500 threshold for the first time ever. Customers have been purchasing more items to keep at home, Stitch Fix said, as they have more brands and price points to choose from.

Stitch Fix defines active clients as people who either ordered a “Fix” subscription or bought an item directly from its website in the preceding 52 weeks from the final day of the quarter.

The company also said it had its lowest ever churn rate at the end of the period, meaning its customers are sticking around.

Last month, Stitch Fix finally opened up its direct-buy option, which is now known as “Freestyle,” to the public. This allows people to shop Stitch Fix for individual items of clothing, without needing to sign up for a subscription.

CEO Elizabeth Spaulding said this should help Stitch Fix grow its addressable market in the year ahead. The company’s next initiative will be to market and raise broader awareness around the offering, she said. Stitch Fix is preparing to roll out a national advertising campaign on the debut.

Early indications are that “Freestyle” is meaningfully accretive to the company’s revenue per active client metric, Spaulding told analysts on a conference call.

“Clients have agency, flexibility and choice while also experiencing a highly personalized shopping experience,” Spaulding said.

For its fiscal first quarter, Stitch Fix said it sees sales in a range of $560 million to $575 million. That’s below analysts’ expectations for $588 million.

For the upcoming fiscal year, Stitch Fix anticipates sales rising 15% or more from the prior year. Analysts polled by Refinitiv had been looking for an 18% increase.

While the entire retail industry is working through supply chain complications, Stitch Fix said it is seeing a small impact, but nothing that will hurt the business in the fall and winter months. The company said it is less reliant on Vietnam, where manufacturing has largely come to a standstill due to ongoing pandemic lockdowns in the region.

As of Tuesday’s market close, Stitch Fix shares have fallen nearly 39% this year. The company has a market cap of $3.8 billion.

Find the full press release from Stitch Fix here.

Sales for the three-month period ended July 31 also came in higher than analysts were expecting, thanks to outsized growth in Stitch Fix’s women’s and kids’ categories. Menswear has been growing more slowly, the company said.

Source: https://www.cnbc.com/2021/09/21/stitch-fix-sfix-q4-2021-earnings.html

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Earnings

Corporate Company Earnings, Find Earnings Per Share and Earnings History Online

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© 2021 CNBC LLC. All Rights Reserved. A Division of NBCUniversal

Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

Market Data Terms of Use and Disclaimers

Data also provided by Reuters

Source: https://www.cnbc.com/earnings/

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