Stitch Fix: Patience Required
- Stitch Fix has slumped to all-time lows on weak guidance for the rest of FY22.
- The online personalized shopping company is still struggling to effectively market their promising new Freestyle product.
- The stock is cheap trading at a department store type forward EV/S multiple.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
(SFIX) has fallen to all-time lows after cutting guidance for FY22, yet the market is extrapolating current results too far into the future. The online personalized shopping and style service still has promising new products set to expand the total addressable market and profits. My investment thesis is ultra Bullish on the stock here below $10.
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Disclosure: Long SFIX. Please read the disclaimer page for more details.