No. of Recommendations: 0
This thesis comes from Opportunity Equity - Miller Value Partners 4Q 2017 Letter:


Stitch Fix was an IPO in the quarter. It’s a data-savvy clothing retailer that ships clothes directly to customers. We’d heard fabulous things about the company and its CEO Katrina Lake from Bill Gurley at Benchmark Capital who was an early venture backer. It priced below the initial range as Blue Apron’s disastrous IPO and fears about ramping marketing spend concerned prospective buyers. At the IPO price of $15, we were able to buy it at only 1x expected fiscal 2019 (ending Jul 2019) revenues. For a company that had clearly demonstrated profitability, making it to $1B in revenues on only $42M in venture investments, we believe that valuation was quite a deal. Stitch Fix looks to transform apparel retail. As a long-time customer who buys most of her clothes from Stitch Fix, I can attest to their value proposition. While we’ve already done quite well with the stock at $25, we look forward to a long investment in the company.

https://millervalue.com/the-value-of-doing-nothing/


Article from B&B Market on seekingalpha.com about Stitch Fix:


Stitch Fix is a breath of fresh air in an otherwise struggling industry. Whether or not there is a complete collapse of major modern names such as Under Armor (UAA), Macy's (M), or Toys R Us is individual opinion. However, the consensus is that there is a major, disruptive change that retailers need to adopt. Stitch Fix (SFIX) has managed to adopt a disruptive e-commerce business model that has shown to be demanded and profitable. Stitch Fix is a new and strong competitor in the industry and should remain a frontrunner, especially in its niche, for the foreseeable future.

Differentiating Factors

SFIX is different compared to the likes of its competition. E-commerce giant Amazon (AMZN) has launched a service called "Prime Wardrobe". While the service is similar, it is not as robust as SFIX.


cont'd

https://seekingalpha.com/article/4153494-stitch-fix-unique-r...

Starrob
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No. of Recommendations: 0
Article on Stitch Fix Earnings

By KARL UTERMOHLEN, InvestorPlace Writer:


Stitch Fix Inc (NASDAQ:SFIX) reported its latest quarterly earnings results, which missed expectations.

The online subscription and personal shopping service’s profit missed the mark during its second quarter as adjusted earnings came in at 2 cents per share, below analysts’ expectations of 6 cents per share. When including a one-time benefit linked to changes in the U.S. tax code, the company earned 7 cents per share.

Revenue came in at $295 million for Stitch Fix as it reaches the halfway point of fiscal 2018, which marked a 24% gain compared to the year-ago quarter. The Wall Street consensus estimate called for sales of $292 million, while the company’s active client base grew 31% to 2.5 million.


cont'd

https://investorplace.com/2018/03/stitch-fix-inc-sfix-2/#.Wq...

Starrob
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