“Stitch Fix shares are down more than 27%, analyst says apparel retailer has hit a ‘growth wall’”
December 8, 2021
“Stitch Fix shares plummeted more than 27% Wednesday to a fresh 52-week low as one analyst said the company has run smack into a “growth wall.” The online shopping and styling service was able to top fiscal first-quarter expectations after the bell on Tuesday, but slowing user growth and a weaker revenue outlook were red flags for investors.
It reported 4.18 million active clients, up 11% from year-ago levels. But within that figure were only 15,000 net new adds — the lowest count Stitch Fix has ever booked in a three-month period, excluding the one quarter… Evercore ISI analyst Mark Mahaney slashed his price target on Stitch Fix shares to $24 from $68. He also downgraded the stock to “in line” from “outperform,” following Tuesday’s report…”