Stitch Fix: Too Prudent For Its Own Good
Stitch Fix disappointed the market with a big cut to FY22 guidance. The company cut back on marketing, while fixing an onboarding issue with their new Freestyle product. The stock is far too cheap at less than 1x FY22 sales targets despite the potential to return to 10%+ growth. This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » Some of the issues hitting Stitch Fix (NASDAQ: SFIX ) are self inflicted. The company remains in the early innings of growth, yet the online personalized shopping service pulls back from aggressively marketing the service regularly due to the holidays and to refine their new products. My investment thesis remains ultra Bullish on this stock after the massive dip from the meme stock peak earlier this year. Read the full article on Seeking Alpha. Disclosure: Long SFIX. Please review the disclaimer page for more details. Update - Jan. 6 The s...