One too many stitches to fix

One too many stitches to fix

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Ever had an event you needed to look really fab for? Then you’ve probably thrown around your clothes in frustration as you “had nothing to wear!”

Stitch Fix (SFIX), the company that uses data science and algorithms to find you the best fit (pun intended), is here to help… though it seems as though the number of people looking for its services isn't what it used to be. Although the losses were expected with no company insight or evidence of improvement in the long run, the online styling service saw shares drop by 19% after hours.

In its 2022 Q2 fiscal results, net revenues did, however, see a 3% increase compared to 2021’s Q2 results (totaling $516.7m). Also, their kids businesses saw a 19% increase and their UK one a 73% one — guess they're the ones looking to look sharp these days!

Why it matters

With decreasing clients, dropping shares, and market confusion, management has already dropped its revenue expectations for the 2022 fiscal year with either steady revenue or slightly lower compared to 2021’s.

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