Why Stitch Fix Stock Is Hitting 52-Week Lows Today

Stitch Fix Inc SFIX shares are trading lower Wednesday after the company reported worse-than-expected financial results and issued guidance below analyst estimates.

Stitch Fix said fiscal fourth-quarter revenue decreased 16% year-over-year to $481.9 million, which missed average analyst estimates of $489.02 million, according to Benzinga Pro. The company reported a quarterly net loss of 65 cents per share, which missed average analyst estimates for a loss of 61 cents per share. 

Active clients decreased 9% year-over-year to 3.795 million, while net revenue per active client increased 8% year-over-year to $546.

"Today's macroeconomic environment and its impact on retail spending has been a challenge to navigate, but we remain committed to working through our transformation and returning to profitability," said Elizabeth Spaulding, CEO of Stitch Fix.

Stitch Fix sees fiscal first-quarter revenue between $455 million and $465 million versus the estimate of $522.68 million. 

Analyst Assessment:

• Telsey Advisory Group analyst Dana Telsey maintained Stitch Fix with a Market Perform and lowered the price target from $8 to $6.
• Stifel analyst Lamont Williams maintained Stitch Fix with a Hold and lowered the price target from $7 to $6.
• Morgan Stanley analyst Lauren Schenk maintained Stitch Fix with an Equal-Weight and lowered the price target from $5 to $4.
• Canaccord Genuity analyst Maria Ripps downgraded Stitch Fix from Buy to Hold and lowered the price target from $12 to $7.

See Also: Top Financial Media Stories Wednesday, September 21

SFIX Price Action: Stitch Fix is making new 52-week lows on Wednesday.

The stock was down 4.66% at $4.50 Wednesday morning. 

Photo: boutiquegirlish21 from Pixabay.