Stitch Fix keeps refusing to die. The all-but-forgotten clothing box membership service is seeing shares jump after losing less and selling more than analysts expected in Q3. What should you do with shares near 2025 highs and up more than 100% since April 7th?
Get my full report card on SFIX's quarter and how I'm playing the stock.
I break down the quarter and give the company its full grade for members in the LINK
Wall St and Retailers adjusting to a random news flow world...
Remember the beginning of January? Retailers were pre-announcing strong Holiday sales and margins. Consumer Discretionary stocks were on a heater dating all the way back to pessimism lows last August. For every Kohl's or Target falling behind there were two or three Walmart's, Costcos, Victoria's Secret or Amazons; quality names near all-time highs based on nothing but old-fashioned execution.
It all seemed so rational. So fair. "Good news is being rewarded, everyone else is Target" we thought, "Surely nothing can stop us now"
Annnnnd that was the top. At least for now. As we wage into the Meat of retail earnings season next week a theme as emerged and it's sort of thorny. Companies are reporting strong results and guiding 2025 below estimates. Generally nothing disastrous. But words like "value conscious" and "promotional" are being used.
We could let it slide a bit when Amazon said it. Amazon has a lot of spending to do. Same for Walmart. But we're only a couple weeks into these reports and we've heard variants on Beat and Guide Lower from, off the top of my head:
