Why Stitch Fix Stock Plunged 47% in March

Shares of Stitch Fix (NASDAQ: SFIX) dropped 47.1% last month, according to data provided by S&P Global Market Intelligence. As negative sentiment was bringing the broader market down early in the month, Stitch Fix issued a disappointing outlook for fiscal 2020. 

While management anticipates some pressure on revenue growth related to economic weakness over the COVID-19 outbreak, the main reason for the lowered outlook given on March 9 was a promotional retail environment due to heightened competition throughout the retail industry. 

Image source: Stitch Fix.

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Source Fool.com