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Stitch Fix: Difficult Path

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  •  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 (NASDAQ:SFIX) has struggled over the last year. The promotional retail environment hasn't helped an apparel business focused on full price items and premium services. My investment thesis remains ultra-Bullish on the stock trading with a limited $400 million market cap, as the company works on improving efficiency and turning cash flow positive despite the weak sales forecasts.

Read the full article on Seeking Alpha. 

Disclosure: Long SFIX. Please review the disclaimer page for more details. 

Update - Dec. 13
Note worthy breakout attempt today. Despite what most thought was a negative quarter and guidance, Stitch Fix has actually bounced and held the lows from back in Oct/Nov. 


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