Why Stitch Fix Stock Slumped on Thursday
Stitch Fix (NASDAQ: SFIX) investors lost ground to the market on Thursday as shares fell 17% by 1:15 p.m. ET compared to a 0.7% drop in the S&P 500. That move continued a sharp downward trend that shareholders have seen through most of the year. The stock is down nearly 80% since the start of 2022.
The decline came as investors continued digesting the e-commerce specialist's Tuesday earnings report, which showed deteriorating earnings prospects.
Stitch Fix announced on Tuesday afternoon that sales fell 16% in the fiscal fourth quarter, which ended in late July. Customer losses amounted to 9%, year over year, marking an acceleration of losses compared to the prior quarter. Management said demand was hurt by inflation and weakening demand for apparel and e-commerce.
Source Fool.com
