Stitch Fix's Stock Breaks Out of the Box Adriana Lee Shares of Stitch Fix Inc. are on a roll. The online styling service's stock rose as much as 11.5 percent Tuesday and closed up 6 percent at $32.99 after KeyBanc analyst Edward Yruma initiated coverage on the stock with an overweight rating and a target price of $38. The run-up left Stitch Fix with an increase of more than 20 percent for the month so far and a gain of 68 percent since the San Francisco-based company reported fiscal third-quarter gains on June 7. "Stitch Fix's unique combination of data-driven human curation will allow it to gain share in the $340 billion-plus soft lines market," Yruma wrote in his note initiating coverage. In particular, he said the company's approach "is a significant advantage relative to the traditional apparel/retail competitive set and allows it to build a scalable, yet highly human, recommendation model." Yruma was referring to the firm's operating m.o., which uses artificial intelligence to track user preferences, purchase history and other data for merchandise selection and then hands the process over to human stylists, who step in to curate the "fixes." Unlike a strictly people-powered process, Stitch Fix's model can work in a high-volume, high-growth environment. Amazon is working on a similar approach with its Prime Wardrobe try-before-you-buy
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