Stitch Fix plunges on downbeat annual revenue forecast

Stitch Fix

25/09/2024 17:05

(Updates)
    ** Shares of online styling service Stitch Fix  SFIX.O  down
as much as 37% to more than five-month low of $2.365 
    ** On Tuesday, SFIX forecast FY25 net rev. to fall between
17% and 15%, in the range of $1.11 bln to $1.16 bln, vs ests. of
$1.31 bln - LSEG
    ** Company's Q4 diluted loss/shr widened to 29 cents, from
17 cents a year ago
    ** If losses hold, stock set for worst day since Oct. 2018
    ** Canaccord Genuity cuts PT on SFIX to $3.5 from $4.5;
maintains "hold" rating
    ** Says sequential decline in company's total active
customers and drop in Q4 revenue reflect difficult customer
acquisition environment
    ** Brokerage Telsey Advisory Group says SFIX faces
challenges in driving subscriber growth in the current
macro-operating environment
        ** Company to see continued risks in driving both
topline growth and improved profitability - brokerage
  
        ** Of the nine brokerages covering the stock eight have
"hold" rating and one "sell"; their median PT is $3.50 - LSEG
data 
    ** Including session moves, stock down nearly 33% YTD

 (Reporting by Anuja Bharat Mistry in Bengaluru)
 ((AnujaBharat.Mistry@thomsonreuters.com;))