Stitch Fix Plunges: Is the Growth Story Over?
Stitch Fix (NASDAQ: SFIX) stock fell to new all-time lows on Tuesday after the company slashed its guidance for fiscal 2020. The stock plunged as much as 32.6% in the morning, falling as low as $14.30, below its $15 IPO price back in 2017. Wednesday saw even further declines.
Though fiscal second-quarter figures were solid, the personalized online styling service now expects revenue growth of just around 15% for the second half of the year, significantly below its long-term guidance of 20%-25%. On a 52-week basis, the company is forecasting full-year revenue growth of just 17%-19%, down from a prior forecast of 23%-25%. Not surprisingly, the sudden change sent investors heading to the exits.
Management said it was being conservative with its guidance as it dealt with a number of challenges, both internal and external.
Source Fool.com
