Why Stitch Fix Sees a Tough 6 Months Ahead

Investors reacted harshly last week to Stitch Fix's (NASDAQ: SFIX) latest earnings report. The subscription-based apparel retailer met management's sales growth outlook and logged another quarter of improving spending trends when it reported second-quarter results for fiscal 2020. However, a few metrics worsened during the period, including with respect to client engagement and rising costs.

In a conference call with Wall Street analysts, CEO Katrina Lake and her team detailed those warning signs, which convinced executives to lower their short-term outlook. Management also explained why they are as bullish as ever about Stitch Fix's global growth opportunities.

Let's take a closer look.

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Source Fool.com