SFIX - Stitch Fix Plunges On Disappointing Results

2024-03-05 16:12:06 ET

Summary

• Stitch Fix's shares plunged 22% after disappointing financial results, with revenue down 17.5% and a decline in active users.
• Despite the negative performance, the company's net revenue per client has been increasing, showing some improvement.
• Stitch Fix has no debt and a surplus of cash, which could potentially lead to value if the company stabilizes.

March 5 ended up being a rather painful day for shareholders of the subscription-driven, web-based retailer known as Stitch Fix ( SFIX ). Once a fast-growing player in the online shopping market that was differentiated by its subscription service, the firm has, for the last couple of years, been truly struggling. After announcing financial results following the close of the market on March 4, shares plunged on March 5. As of this writing, they're down about 22% for the day....

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