Stitch Fix: Difficult Path
- Stitch Fix slashed FY23 sales targets, but the company did boost the midpoint adjusted EBITDA target by $12.5 million.
- The online personalized shopping service is still struggling to overcome the normalized online shopping and promotional apparel environment.
- The stock is cheap with an EV of just $200 million and sales targets at $1.65 billion, but management has to execute on slashed advertising plans.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
Between internal mistakes and online shopping normalization, Stitch Fix () has struggled over the last year. The promotional retail environment hasn't helped an apparel business focused on full price items and premiuminvestment thesis