Stitch Fix, Inc. ( SFIX Quick Quote SFIX - Free Report) recently informed that its board authorized a share repurchase program wherein the retailer can buyback up to $150 million of the Class A common stock. This move demonstrates strength in SFIX’s strategy, value proposition and growth potential. As of Oct 30, 2021, SFIX had 83,193,536 shares of Class A common stock and 25,601,420 shares of Class B common stock outstanding. Per this program, repurchases will be funded by Stitch Fix’s cash and cash equivalents or future cash flow. Stitch Fix had $400.5 million of cash, cash equivalents and marketable securities as of Oct 30, 2021. SFIX generated $141.7 million cash from operating activities during first-quarter fiscal 2022. Also, SFIX reported a free cash flow of $125.3 million for the same period. Per this renowned online personal styling service retailer, repurchase will be made on a discretionary basis from time to time via open market repurchases, privately negotiated deals or other modes. This repurchase plan has no expiration date and can be further modified or terminated at any time. We note that Stitch Fix remains committed to creating a long-term value for its shareholders. In addition, management is focused on enhancing the clients’ experience and intends to become the global destination for personalized shopping and styling. What’s More?
Stitch Fix remains on track with its efforts to boost assortments and improve client experience. Management is steadily expanding its assortments to include more affordable products across categories. It is on track to significantly transform its business in several areas, including the expansion of Shop to the existing client base, the launch and scale of Fix Preview, and investments in systems and people.
SFIX is constantly leveraging product innovation, evolving assortments and using personalized experiences to gain more clients. The expansion of personalized direct purchases for the clients is also impressive. Also, Stitch Fix’s Freestyle drive offers quite a distinct shopping experience. The platform allows customers to discover and buy curated items according to their style preferences, fit and size. Customers can buy items directly from Stitch Fix, irrespective of ordering a Fix first. Management is also optimistic about the Fix Preview capability. Image Source: Zacks Investment Research
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