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Oct 02, 2019
Stitch Fix (SFIX, $20.06) shares falter after-hours, after beating fiscal Q4 results but offering softer guidance on Q1

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.

Related Ticker: SFIX

Contributor

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.


SFIX's Stochastic Oscillator remains in oversold zone for 20 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 uptrend is expected.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SFIX advanced for three days, in of 263 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.

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on August 10, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on SFIX as a result. In of 97 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .

The Moving Average Convergence Divergence Histogram (MACD) for SFIX turned negative on August 11, 2026. 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 43 similar instances when the indicator turned negative. In of the 43 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 August 11, 2026 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 August 17, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 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 .

The Aroon Indicator for SFIX entered a downward trend on September 09, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Fundamental Analysis (Ratings)

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 fair valued 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 (1.914) is normal, around the industry mean (3.006). P/E Ratio (0.000) is within average values for comparable stocks, (22.671). SFIX's Projected Growth (PEG Ratio) (0.000) is very low in comparison to the industry average of (1.655). SFIX has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.034). P/S Ratio (0.290) is also within normal values, averaging (0.681).

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 89, placing this stock worse than average.

Notable companies

The most notable companies in this group are TJX Companies (NYSE:TJX), lululemon athletica (NASDAQ:LULU), Gap Inc (The) (NYSE:GAP), Abercrombie & Fitch Co (NYSE:ANF), Stitch Fix (NASDAQ:SFIX).

Industry description

Companies in the apparel and/or footwear retail industry sell clothing, accessories and footwear, for different age groups and genders. The industry’s product categories could range from basics, such as underwear, to luxury items. Some retailers source items from wholesalers or an apparel brand to sell in their stores; some others are licensed to make and market their own retail goods under particular brands. Several companies outsource production of clothing to developing/emerging economies where labor costs are relatively inexpensive. Apparel retail is often influenced by fashion trends, and many companies feel the need to adapt to what’s “in vogue” to retain customers and attract new ones. A major disruption in this industry has been the burgeoning trend in digital shopping – to compete with rapidly growing e-commerce, even traditional retail players are upping the ante on their online platforms. Much of the products’ performance in apparel/footwear retail is cyclical, i.e., economic boom times encourage consumer spending, while recessions induce thriftiness among people. Some large-cap U.S. apparel/footwear retail companies include TJX Companies Inc., Ross Stores, Inc., Lululemon Athletica Inc. and Burlington Stores, Inc.

Market Cap

The average market capitalization across the Apparel/Footwear Retail Industry is 8.44B. The market cap for tickers in the group ranges from 256K to 179.95B. IDEXY holds the highest valuation in this group at 179.95B. The lowest valued company is DESTQ at 256K.

High and low price notable news

The average weekly price growth across all stocks in the Apparel/Footwear Retail Industry was -2%. For the same Industry, the average monthly price growth was -15%, and the average quarterly price growth was 4%. DLTH experienced the highest price growth at 25%, while RENT experienced the biggest fall at -21%.

Volume

The average weekly volume growth across all stocks in the Apparel/Footwear Retail Industry was 25%. For the same stocks of the Industry, the average monthly volume growth was 84% and the average quarterly volume growth was 29%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 45
P/E Growth Rating: 57
Price Growth Rating: 62
SMR Rating: 65
Profit Risk Rating: 89
Seasonality Score: -24 (-100 ... +100)
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published General Information

General Information

a provider of subscription-based personal shopping and delivery services for women's clothing

Industry ApparelFootwearRetail

Profile
Details
Industry
Apparel Or Footwear Retail
Address
1 Montgomery Street
Phone
+1 415 882-7765
Employees
4165
Web
https://www.stitchfix.com
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