What Happened?

Shares of personalized clothing company Stitch Fix (NASDAQ: SFIX) jumped 2.3% in the morning session after investors bid up the stock ahead of its fourth-quarter earnings results. 

The online personal styling company was scheduled to release its financial figures after the market opened. Analysts expected the company to report a quarterly loss of 10 cents per share, which represented a slight increase from the 9-cent loss reported in the same quarter of the previous year.

After the initial pop the shares cooled down to $5.51, up 0.6% from previous close.

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What Is The Market Telling Us

Stitch Fix’s shares are extremely volatile and have had 46 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock gained 4.1% on the news that investors bid up the stock in anticipation of its fourth-quarter earnings results, scheduled for release after the next day's opening bell. 

Stitch Fix is up 26.1% since the beginning of the year, but at $5.51 per share, it is still trading 17% below its 52-week high of $6.64 from December 2024. Investors who bought $1,000 worth of Stitch Fix’s shares 5 years ago would now be looking at an investment worth $216.28.

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