SFIX - Stitch Fix Earnings Miss Expectations Customer Decline Continues and Guidance Is Weak
2023-09-19 22:25:31 ET
Shares of Stitch Fix (NASDAQ: SFIX) rose 12.1% on Tuesday, following the online personalized-apparel retailer 's release on the prior afternoon of its report for the fourth quarter of fiscal 2023 (ended July 29).
That price action was a reversal from Monday's after-hours trading session, in which the stock declined 6.6%. This reversal dynamic probably largely stems from the action of short-term traders, rather than long-term investors. The stock has a low price-per-share and a high short interest ( short-sellers are those who bet that a stock's price will decline), which increases its volatility.
The quick summary of the report: It was poor, with two relatively bright spots being that the company generated positive free cash flow, albeit largely stemming from cost-cutting measures, and that it's planning to exit the U.K. market, in which it has struggled to gain traction.
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Stitch Fix Earnings Miss Expectations, Customer Decline Continues, and Guidance Is Weak