Is Stitch Fix a better buy than Amazon right now?
Stitch Fix may have more upside if it returns to its former glory. And despite being earlier in its growth cycle, it trades at a lower sales multiple than Amazon. But there are now fresh question marks at Stitch Fix, making it a lot riskier than Amazon. So Amazon is the better buy right now.
Is Stitch Fix stock now overvalued or undervalued?
After doubling in just a few days, it may seem like Stitch Fix shares are now overvalued, or at least that a once-undervalued stock is now fairly priced. But the stock still looks reasonably cheap when measuring a few conventional metrics. Image source: Stitch Fix. Stitch Fix isn't an easy company to value.
Does Jeremy Bowman own Amazon and Stitch Fix?
Jeremy Bowman owns shares of Amazon and Stitch Fix. The Motley Fool owns shares of and recommends Amazon, Revolve Group Inc, Stitch Fix, and Wayfair.
How did Stitch Fix's Revenue perform in Q1?
Stitch Fix saw its revenue decline 9% through the fiscal first quarter that consisted of February, March, and April of last year, and that's not too shabby compared to the sharp double-digit-percentage hits that so many other consumer-facing outfitters experienced.
Is Stitch Fix losing money?
Stitch Fix reported a third-quarter net loss of $78 million, or 72 cents a share, compared with a loss of $18.8 million, or 18 cents a share, in the year-ago period. Revenue decreased to $492.9 million from $535.6 million in the year-ago quarter.
Can I buy stock in Stitch Fix?
Learn how to easily invest in Stitch Fix stock. Stitch Fix is an apparel retail business based in the US. Stitch Fix shares (SFIX) are listed on the NASDAQ and all prices are listed in US Dollars.
Is stitch fix profitable?
In 2014, Stitch Fix started to be profitable. In July 2016, the company ended its fiscal year with recorded sales of $730 million, and in May 2017, the company had raised $42 million from outside investors. In November 2017, the company went public on NASDAQ.
Is stitch fix undervalued?
Despite being undervalued compared to its peers, SFIX has been under fire lately due to its inability to generate meaningful profitability albeit debt free and ample cash profile. Stitch Fix will continue to require significant capital investment to build out its infrastructure and market effectively.
Why is stitch fix stock so low?
Stitch Fix offered a weak outlook for its fiscal third quarter and slashed its forecast for the full year. In its latest quarter, the company said it experienced challenges with onboarding new customers and converting clients.
Who owns Stitch Fix stock?
Top 10 Owners of Stitch Fix IncStockholderStakeShares ownedThe Vanguard Group, Inc.9.36%7,747,426BlackRock Fund Advisors6.12%5,061,293Slate Path Capital LP5.17%4,282,056D. E. Shaw & Co. LP5.04%4,173,1036 more rows
Why is Stitch Fix struggling?
Stitch Fix shares sink after company announces layoffs, offers weak guidance. Stitch Fix is laying off 15% of its salaried workers, or about 330 people. The company also issued weak revenue guidance as it contends with weaker consumer demand.
What is happening to Stitch Fix?
Stitch Fix continued to gain active clients from fiscal 2018 through fiscal 2021 (which ended last August). It struggled with slower sales in fiscal 2020 as the pandemic throttled consumers' demand for new apparel and disrupted its warehouse operations, but its business bounced back in fiscal 2021.
Did Stitch Fix start Shark Tank?
On the day of the initial public offering, Stitch Fix raised nearly $120 million. In 2018, she was named Disruptor of the Year by Retail Dive. Lake is a board member at Grubhub and beauty company Glossier. Lake appeared as a guest shark on Season 11, Episode 14 of the ABC show Shark Tank, which aired on March 6, 2020.
Is Stitch Fix growing?
Stitch Fix's client base has been increasing by an average of 20% from 2016 until 2021. However, its active clients' growth was at a decreasing rate from 31% in 2017 to 9% in 2020 before recovering to 18% in 2021.
Should I buy stitch fix Zacks?
Zacks' proprietary data indicates that Stitch Fix, Inc. is currently rated as a Zacks Rank 3 and we are expecting an inline return from the SFIX shares relative to the market in the next few months.
How many shares of Stitch Fix are there?
We are offering 8,000,000 shares of our Class A common stock. Prior to this offering, there has been no public market for our Class A common stock. The initial public offering price is $15.00 per share. Our Class A common stock has been approved for listing on the Nasdaq Global Select Market under the symbol “SFIX”.
Does Stitch Fix send used clothes?
0:3117:22Stitch Fix Sent Me USED Clothing!? | Unboxing + Try-On Haul ... - YouTubeYouTubeStart of suggested clipEnd of suggested clipAnd then they will send you a box of five items it could be accessories clothing mishmash of all ofMoreAnd then they will send you a box of five items it could be accessories clothing mishmash of all of the above.
Who is Stitch Fix target market?
The primary target customer of Stich Fix are college graduate, careered women in their 20's to 40's located all over America. The secondary target are the women who are not necessarily career focused but are willing to dress fashionably as well as ladies who are not fashion savvy but would like to dress trendy.
Is Stitch Fix eco friendly?
Utilizing recycled materials, natural dyes and more sustainable fabrics, the line is made with 100% more sustainable materials, and is committed to low production quantities for a smaller environmental footprint.
Who are Stitch Fix competitors?
For Companies Like Stitch Fix, Try These 19 Compelling Alternatives in 2022Wantable.Amazon's Personal Shopper by Prime Wardrobe.Trunk Club.Thread.com (Thread Clothing)Prime Wardrobe by Amazon.Nora Gardner Style Box.Menlo Club.Curateur (formerly Rachel Zoe's Box of Style)More items...•
Two e-tail savvy companies think they know what looks good on you, but let's see which one looks better in your portfolio
Since 1995, Rick has been writing for The Motley Fool, where he's a consumer and tech stocks specialist. Yes, that's a long time with more than 20,000 bylines over those 24 years. He's been an analyst for Motley Fool Rule Breakers and a portfolio lead analyst for Motley Fool Supernova since each newsletter service's inception.
A Stitch Fix in time
Stitch Fix was on a roll before the pandemic derailed its momentum. Net revenue rose 29% in fiscal 2019, up from its 26% climb a year earlier. Revenue would go on to decelerate but still manage to grow by better than 20% through the first half of fiscal 2020. It then went on to stumble in its latest quarter that ended in early May.
Dressing like a leader
Amazon isn't throwing a lot marketing muscle behind its Stitch Fix knock-off, and it doesn't have to. Amazon is the undisputed champ of online retail. The $1.7 billion that Stitch Fix has generated in revenue over the trailing four quarters is just 0.5% of the $322 billion that Amazon has delivered. This may be shaping up to be a David vs.
What is stitch fix?
Stitch Fix has taken a unique approach to the apparel industry. Using data science and algorithms, the company sells clothes based on a curated selection chosen by stylists. Most of its sales come from Fixes, or boxes of five items that customers receive, often at regular intervals, buying the items they want and returning the rest.
Is Amazon stock a winner?
Amazon stock has been one of the biggest winners over the last generation. The company has built an impressive network of competitive advantages, and still finds new ways to grow despite already being the second-biggest company in the U.S. by revenue, behind only Walmart. Amazon's sales and profits have surged during the pandemic amid a spike in demand for online shopping, and that trend should bode well for the holiday season as well.
Is Stitch Fix a competitor to Amazon?
Stitch Fix and Amazon are competitors on online apparel, of course, and some believe that Amazon will ultimately push out the personalized styling service. According to estimates, Amazon is the biggest apparel seller in the country -- but the company has often struggled in the sector and has faced pushback from third-party sellers, brands like Nike, and at times seems to lack a cohesive strategy in apparel. It tends to do better with basics like underwear and has found fashion items to be more challenging. The company has borrowed from Stitch Fix, introducing Prime Wardrobe, a service that allows shoppers to try before they buy, and more recently it rolled out a personal shopper service for $4.99/month, slightly more than Stitch Fix's $49 annual style pass.
Wardrobe malfunction
Stitch Fix was posting consistent double-digit growth until the COVID-19 crisis made sweatpants around the house perfectly acceptable. With work, classes, and social events going virtual, there wasn't a lot of interest in paying up for an updated wardrobe.
Bang a gong, Amazon
Amazon, as most investors know by now, didn't skip a beat during the pandemic. It thrived in a climate where folks turned to e-commerce for everything from groceries to new furnishings, in order to make the shelter-in-place phase of the COVID-19 crisis more palatable.
And the winner is..
Amazon's dominance in a realm of retailer stocks is unquestioned at this point. It's the all-weather beast that slides in nicely in any growth-oriented portfolio. Stitch Fix may have more upside if it returns to its former glory. And despite being earlier in its growth cycle, it trades at a lower sales multiple than Amazon.
Is Stitch Fix publicly traded?
Stitch Fix isn't an easy company to value. As a pure-play online styling service, the company doesn't have any true peers, or at least not any that are publicly traded. The closest analog may be Trunk Club, a similar service owned by Nordstrom, but we can't compare the two on valuation.
Is stitch fix a cash machine?
Bears seem to believe that Stitch Fix is a cash-burning machine destined to fail, but that's far from the case. In its two fiscal years before the pandemic, the company delivered a solid profit on a generally accepted accounting principles ( GAAP) basis, with a $36.9 million net income in fiscal 2019 and $44.4 million the year before.
When did stitch fix report earnings?
Stitch Fix reported earnings on March 12, 2018. This was the second quarter that the company reported as a public company. The company reported $0.07 of EPS, beating expectations by $0.01, and reported revenue of $295.9 million, beating expectations by $4.66 million.
What is stitch fix?
Stitch Fix is the clear market leader in this space with the most visibility and recognition; however, it will always be in a fight for dominance. There are numerous competitors for curated styles delivered in a box to your door at home for both men and women. Some of these competitors include the Trunk Club (through Nordstrom (NYSE: JWN) ), Urbanebox, Dia & Co. Styling Box (for larger sizes), Tog + Porter (which includes a 1 on 1 digital styling session), Twirl Trunk (which offers tiered discounts based on the number of items you keep), Le Tote (which is a clothing rental/purchasing service), and the list goes on and on. However, this is to be expected in a business that has little to no economic moat.
What is Amazon Echo Look?
While Prime Wardrobe is Amazon's attempt to increase apparel volume, Echo Look is clearly a data play. The Amazon Echo Look ("Look") is an Echo device that is a vertical camera that takes hands-free pictures and videos for your reference and collects them into a digital wardrobe feature on the Echo Look app.
How often does Stitch Fix deliver?
For those that don't know, Stitch Fix is an online style and fashion company that delivers customized looks with five pieces to clients on a frequency of their choosing - ranging from every 2-3 weeks to one delivery every three months.
Is Prime Wardrobe a stitch fix?
Prime Wardrobe is the company's entry into the Stitch Fix world, but there is no curation. The user is in complete control and can purchase as many items as they want (as long as they meet the minimum of 3). Like Stitch Fix, you only pay for the items that you keep after the 7-day try-on period and then return the items you don't want with free shipping. While this is still in a beta testing mode, it is a safe assumption that Amazon will be using the data about what you buy and what you send back to recommend more items to you for your next shipment - much like Stitch Fix does with the survey that you fill out online after the shipment of each "fix."
Stitch Fix will have to buckle up as the competition heats up
Amazon ( NASDAQ:AMZN) has emerged as one of the top destinations for apparel shoppers in recent years. In 2018, Morgan Stanley predicted the tech giant would dethrone Walmart as the top apparel retailer that year, and Amazon has only continued to gain market share since then.
Amazon's lack of focus is a problem
Investors should be aware that, in addition to Amazon, there are at least a dozen other styling services available, including Nordstrom 's Trunk Club. When $400 billion of retail spending is up for grabs, there will be plenty of competition.
Stitch Fix is perfecting its game
Even though Amazon is dominant in e-commerce, it's playing catch-up to Stitch Fix in personal styling.
E-Commerce Stocks To Watch
Amazon stock leads this group of online retail stocks with an IBD Composite Rating of 96 out of 99. Etsy stock and eBay stock each earn a 95 CR while Stitch Fix stock has an 89 CR. Revolve stock, a June 2019 IPO, lags with a 50 CR.
Amazon Stock
Amazon stock, on IBD's Leaderboard Watchlist, is just 1.1% below a 1,964.50 buy point from a long cup-with-handle base. And after correcting as much as 36% during the 2018 correction, Amazon stock is now about 5% below its all-time high reached last September.
Etsy Stock
Etsy stock is trading 13.7% below a 73.44 buy point. The e-commerce site for handcrafted goods has been consolidating for about four months. During that time, the RS line has lagged.
EBay Stock
EBay stock is hovering 1.4% above a 39.24 buy point, meaning shares are within buy range. Investors could also use an entry of 39.04. Since breaking out, eBay stock has been trading in a tight range around the 40 level over the past three weeks.
Revolve Stock
Revolve, a fashion retailer for millennial and Gen Z consumers, is trading 20% below an IPO base buy point of 48.46.
Stitch Fix Stock
Stitch Fix, a 2017 IPO, is trading 3.4% below a cup-with-handle buy point of 32.10. Shares of the personalized apparel retail platform flirted with a breakout above that level several sessions ago, but were turned away.
Top Stocks To Buy And Watch
Investors should be continually looking for top stocks to add to their watchlists — and their portfolios. To find the best stocks to buy and watch, check out IBD's Stock Lists page. More stock ideas can be found on our Leaderboard and MarketSmith platforms.
