Stitch Fix Inc. posted fiscal first quarter earnings that beat analysts’ expectations.
For the three months ending on November 2, the online personal styling service company reported a breakeven quarter, surpassing the Street forecast of a -6 cent loss.
The company’s revenue surged +21% from the same period last year to $445 million. Active clients jumped +17% to 3.4 million. A major boost came from the launch of Stitch Fix's two new "direct buy" offerings (Shop Your Looks and Shop New Colors) that supported inventory clearance and leveraged group expenses.
For the fiscal second quarter, Stitch Fix is expecting net revenues in the range of $447 million to $455 million, and a client growth rate similar to that in the first quarter. The company has projected adjusted earnings to grow to between $10 million and $15 million.
Looking into the full-fiscal year 2020, the company expects net revenue in the range of $1.9 billion to $1.93 billion (which implies a +22.5% growth rate at the higher end of the forecast range). It predicted adjusted operating earnings of $18 million to $32 million for the year.
The Moving Average Convergence Divergence (MACD) for SFIX turned positive on March 21, 2024. Looking at past instances where SFIX's MACD turned positive, the stock continued to rise in of 42 cases over the following month. The odds of a continued upward trend are .
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where SFIX's RSI Indicator exited the oversold zone, of 32 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 65 cases where SFIX's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on March 25, 2024. You may want to consider a long position or call options on SFIX as a result. In of 98 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SFIX advanced for three days, in of 264 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 10-day moving average for SFIX crossed bearishly below the 50-day moving average on February 28, 2024. 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 .
The Aroon Indicator for SFIX entered a downward trend on March 27, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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 (1.375) is normal, around the industry mean (3.869). P/E Ratio (0.000) is within average values for comparable stocks, (101.165). SFIX's Projected Growth (PEG Ratio) (0.000) is very low in comparison to the industry average of (1.436). SFIX has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.030). P/S Ratio (0.192) is also within normal values, averaging (2.060).
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 74, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of subscription-based personal shopping and delivery services for women's clothing
Industry ApparelFootwearRetail