Key Takeaways Stitch Fix's third-quarter FY25 may reflect a challenging macroeconomic environment. Weakened customer metrics are expected to weigh on the company's Q3 performance. The company is likely to post a narrower Q3 FY25 loss, aided by cost efficiencies and strategy moves.Stitch Fix, Inc. (SFIX) is expected to have registered a year-over-year decrease in its top line when it reports third-quarter fiscal 2025 earnings tomorrow, after market close. The Zacks Consensus Estimate for quarterly revenues ...

Stitch Fix, Inc. (SFIX) has demonstrated strong upward momentum, trading above its 50-day and 200-day simple moving averages (SMA). SFIX closed Friday’s trading session at $4.17, ahead of its 50-day and 200-day SMA of $3.48 and $3.88, respectively. This technical strength, along with sustained momentum, reflects positive market sentiment and investor confidence in SFIX's financial health and growth prospects.SFIX Trades Above 50 & 200-Day Moving AveragesImage Source: Zacks Investment ResearchShares of the c ...

SAN FRANCISCO, May 20, 2025 (GLOBE NEWSWIRE) -- Stitch Fix, Inc. (NASDAQ:SFIX), the leading online personal styling service, today announced that it will release financial results for its third quarter fiscal year 2025 ended May 3, 2025 after market close on Tuesday, June 10, 2025. Following this, Stitch Fix will hold a conference call at 2:00 p.m. PT / 5:00 p.m. ET to discuss its financial results and outlook. The call will be hosted by Matt Baer, CEO, and David Aufderhaar, CFO. A live webcast of the call ...

Core Viewpoint - Stitch Fix, Inc. (SFIX) has shown significant stock performance, with a 38.2% increase over the past year, contrasting with a 10% decline in the Zacks Retail-Apparel and Shoes industry [1][2]. Performance Metrics - The company has outperformed the broader Retail-Wholesale sector and the S&P 500 index, which grew by 9.1% and 4.6% respectively during the same period [2]. - Average order value (AOV) has increased for six consecutive quarters, with a 9% year-over-year rise in the second quarter of fiscal 2025, and a notable 16% spike on January 25 [9]. - Revenue per active client rose to $537, reflecting a 4.3% increase from the previous year [9]. Valuation Insights - Stitch Fix is currently trading at a low price-to-sales (P/S) ratio of 0.31, compared to the industry and sector ratios of 1.28 and 1.43 respectively, indicating potential for attractive entry points for investors [5]. - The company's Value Score of B further emphasizes its investment appeal [5]. Operational Efficiency - Gross margin reached 44.5% in the fiscal second quarter, up 110 basis points from the prior year, attributed to higher AOV and improved product margins [10]. - Contribution margin was reported at 33%, exceeding the historical range of 25-30% for the fourth consecutive quarter [11]. Client Engagement and Personalization - Stitch Fix's client-first approach has led to increased engagement, with customer requests for the same stylist reaching a five-year high [8]. - Keep rates for new styles have increased by 7% year over year, indicating a stronger product-market fit [12]. Market Expansion and Brand Differentiation - The company has revitalized underperforming segments, particularly men's and Freestyle categories, with cashmere sales growing by 400% year-over-year [13]. - New in-house brands like The Commons have emerged as top revenue drivers, enhancing customer appeal and improving margins [14]. Investment Opportunity - Stitch Fix is positioned for sustainable growth through ongoing business transformation, operational efficiency, and brand differentiation, making it an attractive option for investors seeking long-term value [15].

Stitch Fix, Inc. (SFIX) stands out as a compelling value play within the Retail-Apparel and Shoes industry, trading at a forward 12-month price-to-sales ratio of 0.30, down from the industry and the Retail-Wholesale sector's averages of 1.26 and 1.36, respectively. This undervaluation highlights its potential for investors seeking attractive entry points in the retail space. SFIX Looks Attractive From a Valuation Standpoint Image Source: Zacks Investment Research In the past six months, the SFIX stock has g ...

Core Viewpoint - Stitch Fix (SFIX) has experienced a significant decline of 34.8% over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround as analysts expect better earnings than previously predicted [1] Group 1: Stock Performance and Technical Indicators - The stock has been under heavy selling pressure, leading to its current oversold status, indicated by an RSI reading of 25.01, which suggests that selling may be exhausting [5] - The Relative Strength Index (RSI) is a momentum oscillator that helps identify whether a stock is oversold, with readings below 30 typically indicating this condition [2][3] Group 2: Earnings Estimates and Analyst Consensus - Over the last 30 days, the consensus EPS estimate for SFIX has increased by 12%, indicating strong agreement among analysts regarding improved earnings for the current year [6] - SFIX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [7]

Group 1 - The core investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective, rather than market-driven dynamics [1] - The articles emphasize understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - The majority of recommendations will be holds, indicating a cautious approach to investment opportunities, with only a small fraction of companies deemed suitable for buying at any given time [1] Group 2 - The articles aim to provide important information for future investors and introduce a healthy skepticism towards a generally bullish market [1] - There is a clear distinction made between the author's opinions and professional investment advice, highlighting the need for readers to conduct their own due diligence [2][3]

Core Viewpoint - Stitch Fix (SFIX) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in a company's earnings picture, which is crucial for predicting near-term stock price movements [2][3]. - Institutional investors rely on earnings estimates to determine the fair value of stocks, leading to significant price movements when estimates are revised [3]. Company Performance and Outlook - The upgrade for Stitch Fix reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [4]. - For the fiscal year ending July 2025, Stitch Fix is expected to report earnings of -$0.39 per share, a 60.6% change from the previous year [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [6]. - The upgrade of Stitch Fix to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [9].

If you'd like to learn more about how to best position yourself in under valued stocks mispriced by the market to end Q1, consider joining Out Fox The Street .Stitch Fix, Inc. (NASDAQ: SFIX ) has faced a couple of tough years since the Covid boost. The new management team appears to have fixed some product problems and now has key parts of the business back inAnalyst’s Disclosure: I/we have a beneficial long position in the shares of SFIX either through stock ownership, options, or other derivatives. I wrot ...

Financial Performance - For the three and six months ended February 1, 2025, the company reported net revenue of $312.1 million and $630.9 million, representing year-over-year decreases of 5.5% and 9.2%, respectively[87]. - Net loss from continuing operations for the three and six months ended February 1, 2025, was $6.6 million and $12.9 million, respectively, compared to losses of $35.0 million and $61.1 million for the same periods in the prior year[89]. - Revenue decreased by $18.3 million (5.5%) and $64.3 million (9.2%) for the three and six months ended February 1, 2025, respectively, primarily due to a 15.5% decrease in active clients[114]. - Adjusted EBITDA for the three months ended February 1, 2025, was $15.9 million, compared to $4.4 million for the three months ended January 27, 2024[95]. - Free Cash Flow for the six months ended February 1, 2025, was $(9.5) million, slightly worse than $(9.2) million for the same period last year[96]. Client Metrics - The number of active clients decreased to approximately 2,371,000 as of February 1, 2025, down 15.5% from 2,805,000 active clients as of January 27, 2024[87][98]. - Net revenue per active client increased to $537 as of February 1, 2025, reflecting a year-over-year increase of 4.3% from $515[99]. Cost Management - Selling, general, and administrative expenses (SG&A) decreased by $33.6 million (18.5%) and $67.6 million (18.3%) for the three and six months ended February 1, 2025, respectively[116]. - SG&A as a percentage of revenue decreased to 47.4% and 47.8% for the three and six months ended February 1, 2025, compared to 54.9% and 53.1% for the same periods in the prior year[117]. - The company continues to evaluate operating costs and optimize its marketing strategy to position itself for profitability[92]. Restructuring and Charges - The company recorded additional restructuring charges of $0.2 million and $1.2 million for the three and six months ended February 1, 2025, as part of the ongoing restructuring plan[90]. - The company is focused on improving client retention and conversion rates to address challenges in acquiring and retaining active clients[88]. Economic Environment - The macroeconomic environment, including inflation and recessionary concerns, poses risks to consumer discretionary spending and overall business performance[100]. Cash and Investments - The company had $113.2 million in cash and cash equivalents and $116.6 million in investments as of February 1, 2025[120]. - The company entered into a $50.0 million revolving credit facility on December 4, 2023, with $31.3 million in excess availability as of February 1, 2025[121]. - Cash used in operating activities from continuing operations for the six months ended February 1, 2025, was $1.9 million, with a net loss of $12.9 million adjusted by non-cash charges of $45.5 million[127]. - Cash used in investing activities from continuing operations for the six months ended February 1, 2025, was $39.0 million, primarily due to purchases of securities available-for-sale totaling $96.6 million[129]. - Cash used in financing activities from continuing operations for the six months ended February 1, 2025, was $8.2 million, primarily for tax withholding payments related to restricted stock units[131]. Other Financial Information - Interest income increased by 13.7% for the six months ended February 1, 2025, compared to the same period last year[113]. - The company made no repurchases of Class A common stock during the three and six months ended February 1, 2025, with $120.0 million remaining available under the share repurchase program[125]. - The company plans to repatriate remaining UK cash into the U.S. within 12 months, which may be subject to taxes and local restrictions[120]. - There were no material changes to contractual obligations and other commitments during the three months ended February 1, 2025[132]. - There have been no significant changes to critical accounting policies and estimates disclosed in the 2024 Annual Report[134]. - No material changes in market risk were reported during the three months ended February 1, 2025[135].