SFIX

Stitch Fix Inc

Consumer, TMT


Presented:12/06/2018
Price:$28.64
Cap:$2.93B
Current Price:$2.82
Cap:$0.36B

Presented

Date12/06/2018
Price$28.64
Market Cap$2.93B
Ent Value$2.74B
P/E Ratio94.24x
Book Value$3.19
Div Yield0%
Shares O/S102.45M
Ave Daily Vol3,312,657
Short Int21.31%

Current

Price$2.82
Market Cap$0.36B
Stitch Fix, Inc. provides a subscription-based personal shopping and delivery services for women's clothing. It offers personal styling service that delivers personalized fix of accessibly priced items directly to doors across the United States. The company was founded by Katrina Lake and Erin Morrison Flynn in February 2011 and is headquartered in San Francisco, CA.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), Nordstrom Inc (JWN), Stitch Fix Inc (SFIX)

Highlights

Stitch Fix (SFIX) came public in Nov 2017 at $15 per share. The initial reaction to the “subscription box” fashion service was positive, and the stock quickly rose into the $20s. Then, from June through August [2018], SFIX rose up to the low $50s on optimism about market share and revenue growth. With the stock pulling back to the high $20s ($28) following relatively disappointing Q4 ‘18 results, reported Oct 1, the presenter sees a favorable risk/reward and entry point for a short position. He questions management’s ability to scale the business when customer acquisition costs are rising, churn is high, and competition is increasing. In his opinion, the stock is vulnerable to a material decline over the next 2 - 3 quarters, and upside should be limited with the stock trading at a lofty 120x Street EPS estimates for FY 2020 (Jul 31).

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