Why Stitch Fix Shares Were Sliding Today
Stitch Fix (NASDAQ: SFIX) stock was selling off today as the online personalized styling service continued to respond to the broader volatility in the market. Consumer discretionary stocks like Stitch Fix have been hit hard by the coronavirus crisis; consumers have cut back on spending, and many have been laid off. Others, meanwhile, are focusing on buying food and essentials, since the pandemic looks set to keep many Americans inside their homes for at least the next few weeks.
On Friday morning, the company also announced that it would temporarily close two of its distribution facilities, one in California and one in Pennsylvania, in response to local orders regarding the COVID-19 outbreak. That move shows that the pandemic is impacting not just brick-and-mortar stores but online sellers as well.
As of 11:50 a.m. EDT, the stock was down 12.8%, while the S&P 500 had fallen 4.7%.
Source Fool.com
