Uncovering Potential: Stitch Fix's Earnings Preview

Stitch Fix SFIX is preparing to release its quarterly earnings on Tuesday, 2025-06-10. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Stitch Fix to report an earnings per share (EPS) of $-0.11.

Stitch Fix bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Performance in Previous Earnings

In the previous earnings release, the company beat EPS by $0.05, leading to a 5.44% drop in the share price the following trading session.

Here's a look at Stitch Fix's past performance and the resulting price change:

Tracking Stitch Fix's Stock Performance

Shares of Stitch Fix were trading at $4.64 as of June 06. Over the last 52-week period, shares are up 20.41%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Insights Shared by Analysts on Stitch Fix

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Stitch Fix.

Analysts have given Stitch Fix a total of 2 ratings, with the consensus rating being Neutral. The average one-year price target is $6.0, indicating a potential 29.31% upside.

Analyzing Ratings Among Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Guess, Caleres and ThredUp, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Guess, with an average 1-year price target of $18.21, suggesting a potential 292.46% upside.
• Analysts currently favor an Neutral trajectory for Caleres, with an average 1-year price target of $15.0, suggesting a potential 223.28% upside.
• Analysts currently favor an Outperform trajectory for ThredUp, with an average 1-year price target of $6.62, suggesting a potential 42.67% upside.

Peer Analysis Summary

The peer analysis summary presents essential metrics for Guess, Caleres and ThredUp, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Stitch Fix ranks at the bottom for Revenue Growth and Gross Profit, while it is in the middle for Return on Equity. Overall, its performance is below average compared to its peers in the analysis.

Unveiling the Story Behind Stitch Fix

Stitch Fix Inc offers personal style services for men and women. The company engages in delivering one-to-one personalization to clients through the combination of data science and human judgment. It provides a shipment service called A FIX where the stylist's hand selects items from several merchandise with analysis of client and merchandise data to provide a personalized shipment of apparel, shoes, and accessories suited to the client's needs. The company offers products across categories, brands, product types, and price points including Women's, Petite, Maternity, Men's, and Plus. It also offers various product types, including denim, dresses, blouses, skirts, shoes, jewelry, and handbags and sells merchandise across various ranges of price points.

Understanding the Numbers: Stitch Fix's Finances

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Stitch Fix's revenue growth over a period of 3 months has faced challenges. As of 31 January, 2025, the company experienced a revenue decline of approximately -5.54%. This indicates a decrease in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Stitch Fix's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -2.09%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Stitch Fix's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -3.36%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -1.33%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 0.53, Stitch Fix adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Stitch Fix visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.