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Stitch Fix Faces a Stitch in Time: Analysts Adjust Forecasts Post Mediocre Q2 Results

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Stitch Fix, Inc. SFIX recently disclosed a second-quarter earnings report that failed to meet expectations, leading to a downward revision in revenue forecasts for FY24.

Stitch Fix noted quarterly losses of 30 cents per share, falling short of the analyst consensus prediction of losses of 20 cents per share. Quarterly revenues were reported at $330.4 million, missing the forecasted figure of $330.85 million, as per data from Benzinga Pro.

Reflecting on the results, Stitch Fix CEO Matt Baer reaffirmed the company’s original vision to revolutionize the shopping experience for clothing and accessories, emphasizing ongoing efforts to enhance the organizational groundwork and reimagine the customer journey. Baer expressed optimism in the strategic priorities set forth to drive sustainable growth and profitability.

Looking ahead, Stitch Fix anticipates third-quarter revenues ranging between $300 million and $310 million, falling short of the $322.29 million estimate. For the entire fiscal year 2024, the company projects revenues between $1.29 billion and $1.32 billion, compared to the consensus estimate of $1.35 billion.

At the close of Monday’s trading session, Stitch Fix shares recorded a modest 2.2% increase, concluding at $3.28.

Following the earnings announcement, several analysts adjusted their price targets for Stitch Fix.

  • Bernstein revised the price target for Stitch Fix from $4 to $3.4 and maintained a Market Perform rating, according to analyst Aneesha Sherman.
  • Wells Fargo adjusted the price target for Stitch Fix from $3.5 to $3, while analyst Ike Boruchow upheld an Equal-Weight rating.
  • Canaccord Genuity reduced the price target for Stitch Fix from $4 to $3.5, with analyst Maria Ripps holding a Hold rating.

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For further insights: Explore Stitch Fix, Target, and 3 Stocks to Keep an Eye on Before Tuesday

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