
Stitch Fix (SFIX) Stock Forecast & Price Target
Stitch Fix (SFIX) Analyst Ratings
Bulls say
Stitch Fix Inc. exhibited significant improvements in its financial performance during the second quarter, highlighted by an operating margin expansion of 860 basis points to (2.9%), surpassing market expectations. The company's Average Order Value (AOV) increased by 9% year-over-year, driven by higher keep rates and improved pricing strategies, while adjusted EBITDA reflected a robust margin expansion of 380 basis points to 5.1%, exceeding both consensus estimates and previous guidance. Additionally, a notable 17% year-over-year growth in re-engaged clients and a resurgence in growth within the men's business and freestyle channel further bolster positive sentiment regarding the company's future performance.
Bears say
Stitch Fix Inc has experienced a significant decline in active clients, with a 15.5% year-over-year decrease to 2.371 million, which negatively impacted their topline performance, leading to a 5.5% decline in revenue despite a slight increase in net revenue per client. The company's total inventory also fell by 13.0% year-over-year to $109.6 million, indicating an attempt to align inventory levels with decreasing demand but reflecting broader challenges in customer retention and engagement. Furthermore, the revised annual outlook suggests a worsening revenue forecast for fiscal year 2025, with anticipated declines of 12% to 15%, reinforcing concerns regarding the company's long-term growth trajectory.
This aggregate rating is based on analysts' research of Stitch Fix and is not a guaranteed prediction by Public.com or investment advice.
Stitch Fix (SFIX) Analyst Forecast & Price Prediction
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