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Hey everybody, Dave Bartosiak with Trending Stocks at Zacks.com. Nowadays, there’s a box subscription fix for every problem. If you are terrible at picking fruits and vegetables, if you are too lazy to buy razor blades at Walgreen’s. There’s even hair pills for folks that have oddly shaped heads and can’t embrace the beauty that is bald. For the folks out there that couldn’t quite piece together the right outfit for singles night at the bowling alley, there was Stitch Fix (SFIX - Free Report) . As the name suggests, the company would fix your terrible dressing habits by sending you boxes full of matching outfits to make you look like you have some fashion sense, even if you’re a guy that always looks like he got dressed in the dark.
This model was great. The subscription revenue is “sticky” meaning folks maintain their subscriptions and Stitch Fix makes the big bucks. Let’s take a look at the Price, Consensus and EPS Surprise Chart on Zacks.com to see what I mean…
This morning, Stitch Fix reported a Q2 loss of 20 cents per share on revenues of $504 million. While the loss was more narrow than expected, the revenue number missed the mark. What’s worse is SFIX cut their FY21 revenue guidance to a range of $2.02 to $2.05 billion, about $50 million shy of previous expectations. What does that do for your stock? Intraday, SFIX got down to $47.51 after closing yesterday up at $68.52, and peaking at $113.76 in late January.
What happened? Well, they switched up their previously very successful business model. Now, you can go on the site and buy without being a subscriber, and you can pick whatever you want to buy as well. That is sort of detracting from the original subscription business model, and putting the company into a competition that it’s simply not winning right now. Let me know what you think about the business in the comments below. Should Stitch Fix get back to the subscription-only model?
Every time you share this video, somebody wearing Stitch Fix gets a date with one of those girls from the mall kiosks. Subscribe to the YouTube channel. Twitter @bartosiastics. Be sure to check out Zacks.com/promo for this week’s promotion. With Trending Stocks, I’m Dave Bartosiak.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Should I Buy Stitch Fix Stock on the Dip?
Hey everybody, Dave Bartosiak with Trending Stocks at Zacks.com. Nowadays, there’s a box subscription fix for every problem. If you are terrible at picking fruits and vegetables, if you are too lazy to buy razor blades at Walgreen’s. There’s even hair pills for folks that have oddly shaped heads and can’t embrace the beauty that is bald. For the folks out there that couldn’t quite piece together the right outfit for singles night at the bowling alley, there was Stitch Fix (SFIX - Free Report) . As the name suggests, the company would fix your terrible dressing habits by sending you boxes full of matching outfits to make you look like you have some fashion sense, even if you’re a guy that always looks like he got dressed in the dark.
This model was great. The subscription revenue is “sticky” meaning folks maintain their subscriptions and Stitch Fix makes the big bucks. Let’s take a look at the Price, Consensus and EPS Surprise Chart on Zacks.com to see what I mean…
This morning, Stitch Fix reported a Q2 loss of 20 cents per share on revenues of $504 million. While the loss was more narrow than expected, the revenue number missed the mark. What’s worse is SFIX cut their FY21 revenue guidance to a range of $2.02 to $2.05 billion, about $50 million shy of previous expectations. What does that do for your stock? Intraday, SFIX got down to $47.51 after closing yesterday up at $68.52, and peaking at $113.76 in late January.
What happened? Well, they switched up their previously very successful business model. Now, you can go on the site and buy without being a subscriber, and you can pick whatever you want to buy as well. That is sort of detracting from the original subscription business model, and putting the company into a competition that it’s simply not winning right now. Let me know what you think about the business in the comments below. Should Stitch Fix get back to the subscription-only model?
Every time you share this video, somebody wearing Stitch Fix gets a date with one of those girls from the mall kiosks. Subscribe to the YouTube channel. Twitter @bartosiastics. Be sure to check out Zacks.com/promo for this week’s promotion. With Trending Stocks, I’m Dave Bartosiak.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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