CNBC's Michael Bloom contributed to this report. Stitch Fix has a market value of $4.4 billion. In order for JPMorgan to be more positive on the stock, Carpenter said, the company's profits need to "sustainably turn the corner following multiple years of compression." JPMorgan has a neutral rating on Stitch Fix shares, with a $45 price target. "We kind of saw exactly what we thought we would see," she said. Spaulding dismissed this concern Wednesday, saying the summer months tend to be slower for user growth. He expects a similar, disappointing level of net adds in the first half of fiscal 2022. Carpenter noted that Stitch Fix only added a net of 58,000 active clients in its latest three-month period, the lowest in six quarters. You are given 80 unpaid hours as a starting bank to work with, but don't dare use them it would seem. They preach of their difference to all other companies until you actually begin working there. "We believe 'Freestyle,' which has been highly successful with existing clients to date, now faces a more meaningful test in its ability to successfully drive new customer acquisition," JPMorgan analyst Cory Carpenter said in a research note.Īnd there are other red flags. Stitch fix starts out as a company that at face value seems fun, new, and inviting. Some analysts see potential, but want to look for signs of progress in future quarters. Wells Fargo has an underweight rating on Stitch Fix shares, with a $35 price target. Stitch Fix's inventories are also about 80% above 2019 levels, which could end up weighing on profits, he said. "Online apparel dynamics have been stronger than this," Boruchow said. Boruchow notes that comes in below the company's multiyear average of a more than 20% year-over-year increase, despite stepped-up investments in marketing. Stitch Fix is anticipating revenue growth in fiscal 2022, its current fiscal year, of at least 15% from the prior year. But the company doesn't appear to be "firing on all cylinders," he said.įor one, the online styling service's outlook is weak. 1, she is already steering the company away from a subscription-based model.Īgainst relatively low expectations, Stitch Fix delivered a better-than-expected fiscal fourth quarter, Wells Fargo analyst Ike Boruchow said in a research note. And after taking over for founder Katrina Lake on Aug. Spaulding is less than 100 days into her role as CEO. This Kayleigh Delaney Knit Cropped Jumpsuit was so cute and comfortable.Still, most analysts remain cautious. I didn’t get exactly what I requested but I loved everything that Jennifer selected for me to try this month. You can find links to all of my Fixes here and also be sure to check out my Stitch Fix Review Board on Pinterest where I pin my favorite looks.įor this Fix, I asked Jennifer to send a jumpsuit, shoes to wear with the jumpsuit, a dress, and tops.My stylist checks my Pinterest board for inspiration and also reads my note to her each month to see if I have any special requests. I get clothes that I like without having to do any work other than pinning things that I like to my fashion board on Pinterest. I do not like shopping and love receiving clothing from Stitch Fix. You can pick monthly options or schedule a box when you’d like to receive one. When you sign up for Stitch Fix, you can choose how often a box is delivered.Stitch Fix includes a postage-paid envelope making returns super easy. When a Fix arrives, you have three days to try the clothes on and to decide what to keep and what to send back.When you sign up for Stitch Fix, you fill out a detailed style profile that helps your stylist know your likes and dislikes. Stitch Fix is a personal styling service.If you want to try Stitch Fix, sign up here to get $25 off your first box. If you are new to Stitch Fix, these details will help you to understand the service.