Why Stitch Fix Stock Popped Today
Shares of apparel e-commerce company Stitch Fix (NASDAQ: SFIX) popped on Wednesday following weak financial results for the fourth quarter of its fiscal 2022. It doesn't make a ton of sense. But as of 3 p.m. ET, Stitch Fix stock was up 11%.
Fiscal 2022 wasn't good to Stitch Fix. Full-year revenue was only down 1.4% from fiscal 2021, coming in at $2.1 billion. However, business results are deteriorating. Fourth-quarter revenue was down 16% year over year. Active clients (customers in the past year) were down 9% in Q4, its third consecutive quarter of customer attrition. And it recorded a massive $96 million net loss.
Wall Street analysts were unsurprisingly lowering price targets and downgrading Stitch Fix stock en masse today after seeing its Q4 numbers. One of the strongest reactions came from Canaccord's Maria Ripps. According to The Fly, Ripps lowered her price target for Stitch Fix stock by more than 40% to just $7 per share, partly because management keeps lowering its forward expectations.
Source Fool.com
