Stitch Fix Is About to Turn On the Jets With Its Direct Buy Service
The fiscal third-quarter earnings report might look like a lost quarter for Stitch Fix (NASDAQ: SFIX), but there were glimmers of a business that is gaining massive strength in the apparel industry. The momentum of the direct buy offering is a good example.
Direct buy was introduced last year and allows existing clients to purchase items directly from Stitch Fix based on highly personalized recommendations. This is different than Stitch Fix's core service, where clients are shipped a box of items that are selected by a stylist based on the client's preferences and feedback.
While total revenue fell 9% year over year in the last quarter, the direct-buy service showed no signs of slowing down and outperformed management's pre-COVID expectations from February all the way through April, even as Stitch Fix shut down three of its warehouse facilities during March.
Source Fool.com
