1 Big Question Stitch Fix Needs to Answer
Shares of online styling service Stitch Fix (NASDAQ: SFIX) were down more than 28% on Tuesday after the company reported its second-quarter earnings results. The November-through-January period was not kind to the company, with shipping delays increasing expenses and causing revenue to grow at a slower rate than management expected. Guidance for the full fiscal year was also reduced from the last earnings release. Investors clearly did not like the news.
A 28% drop never feels good, but if you are an investor in Stitch Fix, there's no reason to panic. One quarter does not make or break a stock. What you should ask is whether Stitch Fix management is making the necessary investments to grow the business over the long term.
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Source Fool.com
