SFIX - Stitch Fix: Q3 Earnings Still Show Massive Challenges Rally Unjustified

2024-06-05 11:11:58 ET

Summary

• Stitch Fix, Inc.'s Q3 2024 results were not good, with active clients down 20% YoY and revenues down 13% YoY.
• Despite the negative results, Stitch Fix stock rallied as the results were better than expected.
• The company is restructuring to reduce fixed costs and improve the customer experience, but the fundamentals have not changed, and the stock is still not attractive.

Stitch Fix, Inc. ( SFIX ) is an online apparel retailer. The company is famous for using the innovative subscription box system, in which clients subscribe to receive a box (called a Fix) with pieces chosen by a stylist and can later decide which ones to buy and which ones to return....

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