#5 - Stitch Fix (NASDAQ:SFIX)
Stitch Fix (NASDAQ:SFIX) leans into the e-commerce sector by offering a curated experience for customers to freshen their wardrobes. After providing some information about their personal style preferences, customers receive a “fix” of five items of clothing. They keep (and pay for) the items they want and return the rest.
There is an element of bad luck in Stitch Fix’s story. First, the Covid-19 pandemic slowed the company’s growth as many people didn’t feel the need to freshen their wardrobes. The company did get a revenue bump as the economy reopened.
But there are signs that inflation is starting to take its toll. Revenue was down in the last quarter on both a sequential and year-over-year basis. Another problem is that, in an effort to boost revenue, the company introduced its Freestyle service. This allows customers to buy single pieces from the company outside of the full “fixes” they receive. Unfortunately, this is having the effect of cannibalizing the company’s core business.
And Stitch Fix has turned unprofitable. The company has posted negative earnings per share in five of its last six quarters. SFIX stock may be worth a look when the economy turns around, but for right now it’s best to stay away.
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
- $4.33
- Consensus Rating
- Reduce
- Ratings Breakdown
- 0 Buy Ratings, 9 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $3.27 (24.5% Downside)
