Shares of digital clothier Stitch Fix (NASDAQ: SFIX) languished in the first half of 2020, but the second half of the year was a different story. The stock has doubled in value since the summer and skyrocketed past all-time highs not seen since way back in the summer of 2018. Given the company's momentum headed into 2021 and new trends emerging in the retail world, this e-commerce company's run looks far from spent.
According to data compiled by the U.S. Census Bureau, online-only merchants have (unsurprisingly) been the best-performing segment of retail in 2020 year to date with sales up 22% year over year. Clothing and accessories have been the worst-performing category with a terrible 30% year-over-year decline.
Stitch Fix is at the intersection of these two diverging segments of the retail universe, and its business performance this year has been a mixture of both. Full-year fiscal 2020 (the 12 months ended Aug. 1, 2020) revenue increased "only" 11%. Stitch Fix followed it up with a 10% year-over-year sales increase during its fiscal 2021 first quarter (the three months ended Oct. 31, 2020). But the company said it expects to grow the top line 20% to 25% during full-year 2021. As a result, shares of the online clothing company have jumped 65% following its first-quarter update. The stock has doubled in value since July as of this writing.
Source Fool.com