These Analysts Cut Their Forecasts On Stitch Fix After Weak Q2 Results

Stitch Fix, Inc. SFIX reported worse-than-expected second-quarter financial results and issued weak revenue forecast for FY24.

Stitch Fix reported quarterly losses of 30 cents per share which missed the analyst consensus estimate of losses of 20 cents per share. Quarterly sales came in at $330.4 million, missing the analyst consensus estimate of $330.85 million, according to data from Benzinga Pro.

“The original Stitch Fix vision, to create an easier and more enjoyable way for people to shop for clothing and accessories, remains both relevant and compelling,” said Matt Baer, CEO of Stitch Fix. “Our transformation efforts are grounded in fully realizing that vision and include both strengthening the foundation of our company and reimagining our client experience. I am encouraged by the progress we continue to make and am confident we have the right strategic priorities in place to set us up to drive sustainable, profitable growth.”

Stitch Fix sees third-quarter revenue of between $300 million and $310 million, versus the $322.29 million estimate. The company expects fiscal year 2024 revenue of between $1.29 billion and $1.32 billion, versus the $1.35 billion consensus estimate.

Stitch Fix shares gained 2.2% to close at $3.28 on Monday.

These analysts made changes to their price targets on Stitch Fix after the company reported quarterly results.

• Bernstein cut the price target on Stitch Fix from $4 to $3.4. Bernstein analyst Aneesha Sherman maintained a Market Perform rating.
• Wells Fargo lowered the price target on Stitch Fix from $3.5 to $3. Wells Fargo analyst Ike Boruchow maintained an Equal-Weight rating.
• Canaccord Genuity slashed the price target on Stitch Fix from $4 to $3.5. Canaccord Genuity analyst Maria Ripps maintained a Hold rating.

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