SFIX - Stitch Fix's Road To Profitability: Analysts Agree On Long-Term Turnaround Short-Term Struggles | Benzinga
Truist Securities analyst Youssef Squali reiterated a Hold rating on Stitch Fix, Inc. (NASDAQ: SFIX), lowering the price target to $4 from $4.60.
Yesterday, the company missed the Q4 earnings estimates, with net revenue of $375.8 million decreasing 22% year over year.
The analyst notes that traffic to the platform has been pressured over the last several quarters, with negative net additions in active clients for the past seven quarters.
In the fourth quarter, active clients declined 179K sequentially vs. a 98K decline in F3Q.
While the quarterly results were slightly ahead of expectations, the analyst remains cautious on SFIX, given a disappointing F1Q24/FY24 guidance.
The analyst thinks the guidance reflects a business ...