- Stitch Fix sells to clients who inherently don't value apparel that much. Successful retailers target high value customers. High value customers love shopping & care the most about price.
- Stitch Fix isn't the next Netflix because consumers don't have a required monthly cadence. Plus, it's more expensive than the alternative.
- Stitch Fix's latest web traffic is weak and it has a bad average review score on its Facebook page.
- The company had a bad quarter. Sales per active client stagnated, sales missed estimates, and guidance was lowered.
- The valuation is too high for a low-growth business. It had a bad 2020, yet its stock exploded triple digits.
For further details see:
Stitch Fix Is A Broken Concept