#5 - Stitch Fix, Inc. (NASDAQ:SFIX)
Stitch Fix, Inc. (NASDAQ:SFIX) presents investors with another example of why having a digital-only business model is not sufficient by itself.
Stitch Fix offers a curated shopping experience. Customers fill out an online profile and do a “style shuffle” so a stylist gets a sense of what clothing items may appeal to you. For a $20 fee, customers receive their “fix” of five items in the mail. They can keep (and buy) what they want and return the rest at no cost.
The company appeared to have a growth opportunity as the nation came out of the pandemic. With people “getting out” again, they would need to freshen up their wardrobe. And Stitch Fix was a chance to do that in a contactless way.
But competition and a muted return to work are just two of the obstacles working against the company. Revenue did climb but now is falling back. And while it’s still above pre-pandemic levels, it won’t be for long on its current trajectory.
About Stitch Fix
Stitch Fix, Inc sells a range of apparel, shoes, and accessories for men, women, and kids through its website and mobile application in the United States and the United Kingdom. It offers denim, dresses, blouses, skirts, shoes, jewelry, and handbags under the Stitch Fix brand. The company was formerly known as rack habit inc.
Read More - Current Price
- $4.38
- Consensus Rating
- Reduce
- Ratings Breakdown
- 0 Buy Ratings, 9 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $3.27 (25.4% Downside)
