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Stitch Fix: Another Major Disappointment

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Update - Dec. 13, 2025

Despite a better than expected quarter and Stitch Fix soaring on the results, the stock has actually dipped below the pre-earnings price of $4.60. Stitch Fix closed at $6.64 the day following earnings. 

  • Q1 GAAP EPS of -$0.05 beats by $0.09.
  • Revenue of $318.81M (-12.6% Y/Y) beats by $11.88M.

    • Finviz Chart

    The stock now hardly trades above the cash balance of $253 million. Stitch Fix should actually see the bottom in the current quarter with holiday sales around $300 million, though guidance was far above prior estimates. 

    Therealreal (REAL) has tripled this year after turning the online retail business around. The stock now trades at a massive premium to the forward EV/S model of Stitch Fix. 

    Chart


    Original article posted on Sept. 25 

    • Stitch Fix's FQ4'24 results show potential stabilization, but weak FY25 guidance and ongoing restructuring hinder immediate growth prospects.
    • Despite promising enhancements like StyleFile and Fix Expansion, revenue guidance for FQ1'25 is disappointingly low, raising concerns.
    • The stock is undervalued, trading near cash value, but investors face potential dead money in FY25 without a return to growth.
    • Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios. Learn More »
    Stitch Fix, Inc. (NASDAQ:SFIX) entered FQ4'24 results with signs the company could stabilize and transform the AI data business. The personalized shopping service has been redesigning the shopping concept the last fiscal year after exiting UK and hiring a new CEO. My investment thesis is still frustratingly Bullish due to the deep valuation and opportunity in personalized shopping, but the company has to quit restructuring the business and grow revenues in order to reward shareholders.

    Read the full article on Seeking Alpha. 

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

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