Stitch Fix, Inc. (NASDAQ:SFIX ) Q3 2025 Earnings Conference Call June 10, 2025 5:00 PM ET Company Participants Cherryl Valenzuela - Corporate Participant David Aufderhaar - Chief Financial Officer Matthew Baer - CEO & Director Conference Call Participants Aneesha Sherman - Sanford C. Bernstein & Co., LLC.
Stitch Fix (SFIX) came out with a quarterly loss of $0.06 per share versus the Zacks Consensus Estimate of a loss of $0.12. This compares to loss of $0.15 per share a year ago.
SFIX's Q3 FY25 results are likely pressured by macro headwinds and struggles in customer growth and retention.
Stitch Fix gains on personalization and brand strategy. However, a declining client base and soft revenue outlook challenge its growth trajectory.
SFIX is poised for growth with improved client engagement, operational efficiency and momentum in key market segments.
SFIX offers investors a unique mix of value and growth, with strong operational improvements and strategic momentum.
Stitch Fix (SFIX) is technically in oversold territory now, so the heavy selling pressure might have exhausted. This along with strong agreement among Wall Street analysts in raising earnings estimates could lead to a trend reversal for the stock.
Stitch Fix shows operational improvements with higher revenue per active client and lower SG&A, but remains unprofitable and shrinking, warranting a Hold rating. Gross margin improved to 44.5% and SG&A expenses decreased significantly, indicating better operational discipline and potential for future profitability. New management's strategic changes, including increased item count per Fix and better inventory management, are positive, but growth inflection is needed for profitability.
Stitch Fix (SFIX) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Stitch Fix has resolved product issues, with new management driving growth, especially through the Freestyle product, leading to revenue guidance above expectations. The market is too focused on active clients, which is a lagging measure incorporating clients from the last 12 months. With a cash balance of $230 million and a low market cap, Stitch Fix presents a significant upside if it returns to growth mode.
Shares of Stitch Fix (SFIX) surged Wednesday after the clothing subscription business reported better revenue and a smaller loss than analysts had expected for the second quarter of fiscal 2025.
“With market concerns of consumer spending slowing and recession fears now building, we did not have an improving SFIX model on our bingo card,” one team of analysts noted.