We now see Stitch Fix as a sell

Article Excerpt

STITCH FIX, $6.81, is a sell. The company (Nasdaq symbol SFIX; TSINetwork Rating: Speculative) (www.stitchfix.com; Shares outstanding: 82.8 million; Market cap: $672.8 million; No dividends paid) began as an online stylist providing subscribers with regular shipments of clothes, shoes and accessories, all tailored to their tastes using artificial intelligence. However, growth in that market has slowed significantly. In the three months ended April 30, 2022, Stitch Fix’s overall revenue fell 8.0%, to $492.2 million from $535.6 million a year earlier. Sales were lower due to a 4.9% decrease in the number of active clients to 3.9 million from 4.1 million. One of the biggest reasons for the lower sales is a drop in overall e-commerce activity across the U.S. The company reported a loss of $78.0 million, or $0.72 a share, in the latest quarter. That’s compared to the year-earlier loss of $18.8 million, or $0.18. To cut its losses, Stitch Fix will reduce its workforce by around 15%. But more important, it aims to expand…

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