Why Stitch Fix Stock Lost 27% in August
Stitch Fix (NASDAQ: SFIX) trailed the market by a wide margin last month, dropping 27% compared to a 2% decline in the S&P 500, according to S&P Global Market Intelligence. The slump pushed year-to-date returns back to single digits, whereas the stock had nearly doubled at one point earlier in the year.
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The tech stock has been unusually volatile since its fiscal third-quarter earnings release in mid-July. That report showed strong growth in key metrics like revenue and active users, in addition to healthy gross profitability. On the other hand, Stitch Fix swung to a loss in the period as it spent heavily on marketing and preparation for its international rollout. Shares were further pressured in August by worries about competition from Amazon's personal styling service.
Source Fool.com
