The Price Of Stitch Fix Stock Is All Over The Place: What's Happening?

Stitch Fix Inc SFIX shares are trading lower Wednesday after the company reported third-quarter financial results.

What Happened: Stitch Fix reported fiscal first-quarter revenue of $455.59 million, which beat average analyst estimates of $459.44 million, according to Benzinga Pro. The company reported a quarterly net loss of 50 cents per share, which missed estimates for a loss of 47 cents per share.

"This quarter we made meaningful progress on our transformation journey despite a difficult macro environment. Through diligent cost savings and efficiencies we beat our adjusted EBITDA expectations for Q1 and have improved our adjusted EBITDA guidance for FY23," said Elizabeth Spaulding, CEO of Stitch Fix.

Outlook: Stitch Fix expects fiscal second-quarter revenue to be between $410 million and $420 million versus estimates of $444.96 million. The company expects full-year revenue to be between $1.6 billion and $1.7 billion versus estimates of $1.81 billion.

Analyst Assessment: Multiple analysts lowered price targets on the stock following the company's quarterly results.

• Telsey Advisory Group analyst Dana Telsey maintained Stitch Fix with a Market Perform and lowered the price target from $6 to $5.
• Barclays analyst Trevor Young maintained Stitch Fix with an Equal-Weight and lowered the price target from $5 to $4.
• Wells Fargo analyst Ike Boruchow maintained Stitch Fix with an Underweight and lowered the price target from $6 to $4.
• Truist Securities analyst Youssef Squali maintained Stitch Fix with a Hold and lowered the price target from $6 to $5.

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SFIX Price Action: Stitch Fix shares traded up to around $4.25 per share Wednesday morning before reversing and turning negative. The stock was down 5.18% at $3.48 at time of publication, according to Benzinga Pro.

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