Tuesday's Market Minute: Can SFIX Fix Itself?

Stitch Fix SFIX is expected to report 1Q earnings after the bell today, with Zacks estimates a loss per share of $0.13 and revenue of $572.27 million. The stock has had a rough year, falling from its high of $113.76 in January to a low of $22.04 yesterday. The company is based around a clothing subscription box, curated to each customer by a personal stylist and Stitch Fix’s artificial intelligence.

However, over the summer, over a third of employees reportedly quit as Stitch Fix made its scheduling policies less flexible, also complaining of poor inventory selection – and this comes after another big layoff in June of 2020. Stitch Fix has attempted to give customers more flexibility with their boxes this year, including the option to remove pieces they don’t like before it ships, or to shop directly on the website with a “Freestyle” option, which could also affect inventory options for stylists. Rent the Runway, another competitor, has a similar feature – but with the very thing Stitch Fix built its brand on weakening, and tech overall getting hit in the market, can it surprise to the upside today?

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