BUZZ - Stitch Fix shares plunge due to disappointing revenue projections

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September 24 - ** The share price of online personal styling service company Stitch Fix (SFIX.O) dropped as much as 25.18% to $2.11, marking its lowest point since the start of 2024

** If the decline persists, the stock will record its largest single-day drop since December 2024

** The company expects first-quarter revenue to miss analysts’ forecasts, dragged down by challenges in customer acquisition and retention

** First-quarter revenue is estimated to be between $323 million and $328 million, while analysts expect $343.2 million—data compiled by LSEG

** (link) Posted fourth-quarter revenue of $324.4 million, falling short of the $325.6 million expectation

** “Simply put, the fourth-quarter results have stalled the company’s business transformation progress. Recently we’ve observed more signs of consumer stress, and smaller companies like SFIX are being affected more visibly. The complex macro environment has diminished our confidence that customer growth will regain momentum in the short term,” said Mizuho Securities analyst David Bellinger

** However, the company highlighted growth opportunities: with around 20% of new customers using GLP-1 drugs, Stitch Fix is expanding its tailored services for clients whose needs shift during their weight loss journey

** As of yesterday’s close, the stock had declined 46.3% year-to-date

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