Key Points
- Stitch Fix stock has fallen hard lately over low expectations for near-term growth.
- Active client growth decelerated last quarter following the launch of the new Freestyle service.
- One number that has been trending in the right direction is spending per client.
What's happening with Stitch Fix stock?
Dec 09, 2021 · The stock fell 24% on Wednesday after the report came out, but recouped some of those losses on Thursday, a sign some investors believe that the stock was oversold. While shares of Stitch Fix are ...
Why is Stitch Fix registering 5% of its shares?
Sep 30, 2021 · Following the post-earnings bounce last week, shares of Stitch Fix ( SFIX -0.32%) were trading down 10.8% week to date on Thursday. The dip can partly be explained by the broader market sell-off...
What happened to online retail stocks on Wednesday?
Mar 03, 2022 · After seeing its stock price fall 85% over the last year, Stitch Fix has a market cap of just $1.3 billion, while generating trailing-12-month revenue of …
Is Stitch Fix losing money?
How is Stitch Fix doing financially?
Is Stitch Fix undervalued?
Is Stitch Fix growing?
What has happened to Stitch Fix?
- 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 is the founder of Stitch Fix?
What is Stitch Fix's market share?
Who is Elizabeth Spaulding?
How is stitch fix freestyle different?
What is the purpose of the new shares in stitch fix?
The purpose of the new shares is intended to go toward the company's 2017 executive incentive plan.
Is stitch fix freestyle?
Stitch Fix is also seeing revenue per client inch higher, following the rollout of direct buy over the last year, which was recently rebranded as Stitch Fix Freestyle .
NASDAQ: SFIX
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Supply shortages and other issues are pressuring growth in the near term for this online apparel retailer
Share prices of Stitch Fix ( SFIX 2.29% ) were down about 22% the day after the company delivered better-than-expected sales results for the fiscal first quarter of 2022. The stock fell after management delivered a soft outlook for the fiscal second quarter, which raises some questions about the company's execution.
What went wrong
Despite revenue growing a solid 19% year over year, management is seeing lower net client additions than normal after launching its Freestyle service in September.
I'm not giving up on Stitch Fix
The flattish growth expected in the next quarter looks bad, but what might be getting overlooked is that management mentioned during the earnings call that these are, indeed, temporary problems. Could it be poor execution? Maybe, but Stitch Fix should return to growth.
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What happened
Online retail stocks crashed in Wednesday trading, with Stitch Fix (NASDAQ: SFIX) sliding 9.1%, Etsy (NASDAQ: ETSY) off 9.3%, and Farfetch (NYSE: FTCH) falling farthest of all -- down 9.7%.
So what
PayPal only "missed earnings" by a penny in last night's fourth-quarter report, and the fintech giant actually beat on revenue, reporting $6.9 billion when Wall Street analysts had only expected $6.86 billion. Then again, Q4 2021 earnings weren't really the problem at PayPal.
Now what
Now why would these PayPal problems be hurting shares of Stitch Fix, Etsy, and Farfetch? Two reasons.
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