Stitch Fix (SFIX, $20.06) shares falter after-hours, after beating fiscal Q4 results but offering softer guidance on Q1
Shares of Stitch Fix slumped by as much as -12%after-hours, following the company’s latest quarterly earnings release. Although the company's quarterly results surpassed estimates, its softer forecast on future quarter hurt the stock price.
The online personal styling service’s fiscal fourth quarter earnings came in at 7 cents per share, beating analysts’ expectations of 4 cents a share.
Revenue surged +36% year-over-year to $432.1 million, which is slightly higher than the $432 million expected.
Stitch Fix’s active client base grew +18% year over year, to 3.2 million people - about in-line with the 3.23 million analysts were expecting (based on FactSet poll).
However, what probably led to its shares declining was its indication of a “softer” outlook for the first quarter of fiscal 2020. For the first quarter, Stitch Fix is expecting sales to range between $438 million and $442 million – below the Street forecast of $451 million. Stitch Fix is expecting a softer growth for the first quarter compared to the full-year growth, citing their successful summer products’ lower average unit retails and average order values, coupled with less marketing spend in late Q4 ’19 leading to fewer clients at the start of Q1 ’20.
The company predicts that annual sales would range between $1.9 billion and $1.93 billion, while analysts have been expecting $1.91 billion.
Momentum Indicator for SFIX turns negative, indicating new downward trend
SFIX saw its Momentum Indicator move below the 0 level on February 25, 2025. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 102 similar instances where the indicator turned negative. In of the 102 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for SFIX turned negative on February 24, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
SFIX moved below its 50-day moving average on February 27, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for SFIX crossed bearishly below the 50-day moving average on March 06, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SFIX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Indicator entered the oversold zone -- be on the watch for SFIX's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 9 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SFIX advanced for three days, in of 279 cases, the price rose further within the following month. The odds of a continued upward trend are .
SFIX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 216 cases where SFIX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.490) is normal, around the industry mean (3.964). P/E Ratio (0.000) is within average values for comparable stocks, (110.742). SFIX's Projected Growth (PEG Ratio) (0.000) is very low in comparison to the industry average of (1.444). SFIX has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.028). P/S Ratio (0.208) is also within normal values, averaging (1.139).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. SFIX’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SFIX’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock worse than average.
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General Information
a provider of subscription-based personal shopping and delivery services for women's clothing
Industry ApparelFootwearRetail