Why Stitch Fix Stock Slumped 25% in September
Shares of online clothier Stitch Fix (NASDAQ: SFIX) lost 25% of whatever value they had left in September, according to data provided by S&P Global Market Intelligence, continuing a trend of a declining stock price -- and business. It reported another disappointing round of quarterly financial results, and investors don't see much hope.
Investors were excited when Stitch Fix first came onto the scene. It offers a new take on the personal shopper, an online service where clients receive a monthly clothing "fix" based on a style survey, machine learning algorithms, and a personal shopping service.
However, the hype didn't last too long. Customers can return whatever they want from the fix, and clients weren't buying into the someone-else-picks-my-clothes phenomenon. The company launched a bunch of new ventures to change it up, like fixes at chosen intervals instead of monthly, and the option for customers to select their own items. But business hasn't picked up, and sales continue to fall.
Source Fool.com
