Down 97%, What Happened to Stitch Fix Stock?
Of all the collapses in the stock market over the last few years, only a handful have been as dramatic as Stitch Fix (NASDAQ: SFIX). Shares of the online styling service have fallen a whopping 97% since they peaked in early 2021.
The company has gone from a rapidly growing e-commerce stock with disruptive potential in the apparel industry to a declining business that looks utterly broken. Revenue fell 22% in its fiscal first quarter, marking six straight quarters of decelerating revenue growth, and the company expects a similar slide in revenue for the current fiscal year.
Management blamed a difficult macroeconomic environment and a renewed focus on profitability, meaning the company is cutting costs and scaling back on investments in growth. It said on the first-quarter earnings call that it is now focused on reducing costs by $135 million this year.
Source Fool.com
