Stitch Fix plunges after downbeat revenue forecast
BUZZ-Stitch Fix plunges after downbeat revenue forecast Updates
** Shares of online personal styling service firm Stitch Fix SFIX.O down as much as 25.18% at $2.11, lowest since 2024
** Stock set for its worst day since December 2024, if losses hold
** Co forecasts Q1 revenue below analysts' estimate as challenges in client acquisition and retention weigh on growth
** Sees Q1 revenue between $323 million and $328 million, compared to estimates of $343.2 million - data compiled by LSEG
** Posts Q4 revenue of $324.4 million, missing estimates of $325.6 million
** "Q4 results simply put the company's turnaround progress at an impasse. We've been coming across more signals of consumer strain lately, with smaller players such as SFIX more exposed. A complicated macro backdrop leaves us less confident in returning to positive customer growth near-term" - David Bellinger, analyst at Mizuho
** Co, however, highlighted a growth opportunity as it expands services tailored to customers whose needs evolve with weight loss as roughly 20% of its new clients are using GLP-1 medications
** Up to last day's close, shares are down 46.3% YTD
(Reporting by Sudeshna Ghoshal and Sanskriti Shekhar in Bengaluru)