Investors are warming back up to Stitch Fix (NASDAQ: SFIX) in 2023. The e-commerce apparel seller's shares beat the broader market for most of the past year, even though the company is reeling from a shrinking user base and continued net losses.

Wall Street seems to be attracted to the stock's low valuation, which is only a tiny fraction of the peak valuation that investors paid during the pandemic. However, there are some important things they should know before deciding to buy into this rebound story.

Let's look at three of the biggest caution signs around Stitch Fix stock.

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Source Fool.com