7 Reasons to Sell Stitch Fix Stock
Stitch Fix's (NASDAQ: SFIX) stock is sinking to new all-time lows following its fiscal 2022 fourth-quarter earnings report. The online apparel retailer's revenue declined 16% year over year to $481.9 million, which missed analysts' estimates by $6.9 million. It posted a net loss of $96.3 million, compared to a net profit of $28.0 million a year ago, and the $0.89 loss per share missed the consensus forecast by $0.26.
Those numbers were dismal, but some value-seeking investors might still be tempted to buy Stitch Fix as the stock trades at 0.2 times this year's sales and 70% below its IPO price. However, that's a bad idea for seven reasons.
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Source Fool.com
