company background image
SFIX

Stitch Fix NasdaqGS:SFIX Stock Report

Last Price

US$8.14

Market Cap

US$880.5m

7D

17.8%

1Y

-79.9%

Updated

17 Aug, 2022

Data

Company Financials +
SFIX fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance0/6
Financial Health6/6
Dividends0/6

SFIX Stock Overview

Stitch Fix, Inc. sells a range of apparel, shoes, and accessories through its Website and mobile application in the United States.

Stitch Fix, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Stitch Fix
Historical stock prices
Current Share PriceUS$8.14
52 Week HighUS$44.65
52 Week LowUS$4.66
Beta1.94
1 Month Change38.20%
3 Month Change-1.09%
1 Year Change-79.95%
3 Year Change-59.56%
5 Year Changen/a
Change since IPO-46.27%

Recent News & Updates

Jul 13

Stitch Fix: No Rescue In Sight

Stitch Fix has lost more than 70% of its value this year as its business has eroded. Weakness in e-commerce, plus confusion in Stitch Fix's brand proposition, has led to the company's revenue declining y/y. Adding insult to injury, inflationary pressure is also dampening gross margins and widening Stitch Fix's losses. With limited liquidity, it's unclear how Stitch Fix plans to climb out of its current hole. The tech sector correction of 2022 has pretty much punished the entire group uniformly. While many stocks are now sitting below what I'd consider their intrinsic worth, some steep corrections this year were also perfectly in line with business erosion. Stitch Fix (SFIX) is an example of this. The clothing e-commerce company was once a popular fad, but in the waning days of the pandemic and the return of brick-and-mortar retail, Stitch Fix's popularity among consumers has declined dramatically. Year to date, shares have lost more than 70% of their value - which I think is in keeping with the performance of the business. Data by YCharts I remain quite bearish on Stitch Fix. I think the company is in a very precarious situation - and in particular, I'm concerned about the following factors: Is Stitch Fix relevant anymore, or is it just a passing fad? The idea of getting a "Fix" of five items and keeping only what you like was the whole selling point behind Stitch Fix in the first place. But declining active customers seem to be suggesting that people don't want this complexity in the shopping process. In fact, Stitch Fix introduced its direct-buy "Freestyle" program to mirror classic e-tailers: and in doing so, it lost its niche in the first place. Without much of a powerful brand to draw from, it's unclear how Stitch Fix plans to remain relevant. No clear moat. Stitch Fix's innovative buying method was part of its appeal versus the dozens of e-commerce clothing competitors out there. With the business doubling down on Freestyle, it's unclear what Stitch Fix plans to do to hold onto customer loyalty. Weighed down by inflationary pressures. Stitch Fix's gross margins are declining. At the same time, even though the company is letting go of a chunk of its staff, it is also facing corporate wage inflation. The net result is a deep gush of red ink, which is exactly what Wall Street does not want to see in this very cautious stock market. When it comes to consumer internet businesses, momentum is everything. Consumers catch onto what is "hot" at the moment, and rarely is there ever an opportunity for a company past its popularity point to suddenly become desirable again. It wouldn't be too far of a stretch to say that Stitch Fix may mirror some of the consumer internet failures of the dotcom era. Especially as more and more clothing brands themselves double down on their e-commerce chops, marketplace-style companies like Stitch Fix will be left competing against brands that have far better direct relationships with their customer bases. The bottom line here: resist the temptation to buy Stitch Fix on the dip. There is little value to salvage here. Unlike a struggling software business which at least would have some amount of recurring revenue, Stitch Fix makes for quite an unattractive "rescue acquisition" target - it's weighed down by inventory, it has a fickle customer base, and the nature of its business/its cost structure are much lower in margin. Continue to steer clear here to avoid further losses. Q3 download Stitch Fix's fiscal Q3 results, covering the quarter ending in April, were nothing short of a disaster. Let's go through some of the highlights here, starting with the top-line metrics: Stitch Fix revenue metrics (Stitch Fix Q3 earnings deck) Stitch Fix's revenue declined -8% y/y to $493 million in the quarter, missing Wall Street's expectations of $494 million. Note that this represents the first shift to a decline for Stitch Fix, which had grown at a 3% y/y pace in Q2. Adding insult to injury: this decline is only going to get worse. In Q4, the company is now forecasting a -13-15% y/y decline: Stitch Fix Q4 outlook (Stitch Fix Q3 earnings release) Active customers, too, are peeling off. Sequentially versus Q2, the company lost 112k active customers (which is defined as a person who made a purchase over the past year, which is a fairly loose metric), or roughly 3% of its overall base.

Shareholder Returns

SFIXUS Online RetailUS Market
7D17.8%-1.1%1.1%
1Y-79.9%-25.2%-9.0%

Return vs Industry: SFIX underperformed the US Online Retail industry which returned -24% over the past year.

Return vs Market: SFIX underperformed the US Market which returned -8.9% over the past year.

Price Volatility

Is SFIX's price volatile compared to industry and market?
SFIX volatility
SFIX Average Weekly Movement15.1%
Online Retail Industry Average Movement12.4%
Market Average Movement7.6%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.1%

Stable Share Price: SFIX is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: SFIX's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
201111,260Elizabeth Spauldinghttps://www.stitchfix.com

Stitch Fix, Inc. sells a range of apparel, shoes, and accessories through its Website and mobile application in the United States. It offers denim, dresses, blouses, skirts, shoes, jewelry, and handbags for men, women, and kids under the Stitch Fix brand. The company was formerly known as rack habit inc. and changed its name to Stitch Fix, Inc. in October 2011.

Stitch Fix, Inc. Fundamentals Summary

How do Stitch Fix's earnings and revenue compare to its market cap?
SFIX fundamental statistics
Market CapUS$880.51m
Earnings (TTM)-US$89.31m
Revenue (TTM)US$2.16b

0.4x

P/S Ratio

-9.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SFIX income statement (TTM)
RevenueUS$2.16b
Cost of RevenueUS$1.18b
Gross ProfitUS$981.26m
Other ExpensesUS$1.07b
Earnings-US$89.31m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.83
Gross Margin45.39%
Net Profit Margin-4.13%
Debt/Equity Ratio0%

How did SFIX perform over the long term?

See historical performance and comparison