2023-05-01 01:04:00 ET
Summary
- Though shares of Stitch Fix have advanced more than 15% year to date, the stock has made very little fundamental progress.
- The company is focused on cost cuts, but better efficiency can't reverse the fact that Stitch Fix is consistently losing clients.
- Founder Katrina Lake is back in the CEO seat, but only on a temporary basis.
- Stitch Fix is cheap at ~0.1x current-year revenue, but with limited turnaround prospects, it's unclear how the company will survive.
For further details see:
Stitch Fix: Once In The Doghouse, It Will Be Difficult To Climb Out