I’ve been thinking of investing in Stitch Fix (SFIX), a specialized-fashion online retailer that provides personalized styling service, headquartered in San Francisco. The SFIX stock price hit a high of $51 back in September ’18, however, after slightly disappointing subscriber and sales numbers for its fiscal fourth quarter (2.74 million subscribers vs expected 2.8 million, and $318.3 million in sales versus expected $318.9 million), the stock is on sale at almost 50% from its previous high. This is understandable since subscriber growth is a direct revenue driver for consumer subscription businesses. 

Stitch Fix’s secret sauce is its integration of fashion and data science. As it collects more data over time, it should be able to improve its ability to match outfits to customers. 

Before buying any SFIX stock, I asked my wife to place an order through www.stitchfix.com to experience how the service really is. She filled out a style profile and once her package arrived, she had fun trying on the clothes and keeping what she wanted. The entire package was about $200, and she decided to keep 1 out of 5 pieces of clothing, which was $78 for a nice pair of pants. The one draw back I discovered is that you only get 3 days to make a decision once your package arrives.

At a current stock price of $26.36, SFIX is still on my radar as a long term play, but first, let’s see if the wifey decides to stay a subscriber of Stitch Fix.