Stitch Fix Earnings on Dec. 7: Will the Stock Surge or Plunge?
Stitch Fix (NASDAQ: SFIX) is slated to report its results for the first quarter of fiscal 2022 (which ended Oct. 30) after the market close on Tuesday, Dec. 7.
Shares of the online personalized-apparel retailer tend to be volatile following the release of quarterly results. For the last three consecutive quarters, the stock's post-earnings release move has been in the double digits: up nearly 16% last quarter, up more than 14% in the prior quarter (fiscal Q3 2021), and down 28% in fiscal Q2 2021.
Should investors buy Stitch Fix stock -- which is down 22% over the last year -- ahead of the upcoming earnings release? Not long-term investors, in my opinion. The company "has yet to prove that its business model can scale and remain profitable," as I wrote in June 2020, opining that Amazon stock was the better e-commerce play. As for pure-play retailers, I continue to favor Lululemon, whose last quarterly report was stellar.
Source Fool.com
