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Stitch Fix shares fall on earnings miss and net loss due to carrier delays

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Yahoo Finance’s Julie Hyman, Myles Udland, and Brian Sozzi discuss Stitch Fix earnings miss, as shares tumble on lackluster forecast and why shares are down for Dick’s Sporting Goods.

Video Transcript

JULIE HYMAN: One place that cash is not going today is into Stitch Fix. That company's shares are down by nearly 30% right now. The company reported a net loss, blamed that among other things on carrier delays in getting shipments of its clothing out to its clients. The company also came out with sort of a lackluster forecast. Brian, I know you're watching this one. You know, Stitch Fix has really had a lot of ups and downs over the past several years since it came public.

BRIAN SOZZI: Julie, I wish I wasn't watching this, because this is a horrific, horrific move in Stitch Fix, and I feel as though a lot of analysts in the street are just mincing words and they're jumping beyond the obvious here. This was an awful quarter, and it was awful guidance from the company. Where is the guidance that this could happen three to six months ago? And you didn't see it. Out of all the comments on the earnings call last night, yeah, you mentioned the carrier delays and higher costs, that is a consideration.

But this is the most worrisome comment that I got from Stitch Fix last night. The founder and CEO, Katrina Lake, noting the consumers are seeing less self purchase behavior, so that is subsiding, and then its being replaced with gifting behavior. And what that essentially tells me is consumers are not viewing Stitch Fix as an important place to shop. It's not top of mind potentially as the economy reopens and people are buying apparel. And they are starting to buy apparel, it just doesn't appear to be from Stitch Fix.

JULIE HYMAN: Yeah, really interesting. And I know you've been watching those other apparel buying trends happening elsewhere. Not happening I guess with sporting apparel either. Dick's Sporting Goods came out with its numbers, also came out with a sort of modest forecast here. You know, outdoor and sporting goods are something that actually did relatively well during the pandemic. People wanted to get outside, right? So what exactly is happening now? What's reflected in those Dick's numbers?

BRIAN SOZZI: Well, Julie, they had a good quarter. All right, and you put up over 19% same store sales increase, that was really good. A lot of-- Macy's would certainly kill for a number like that, so would Kohl's. But it comes down to guidance here, and at the end of the day, the high end of Dick's sales and earnings guidance, the high end still suggests sales and earnings will be down year over year after a very strong year last year, and that's all the market cares about right now.

JULIE HYMAN: Yeah, looks that way. All right, yeah, we're seeing that drop not quite as painful as Stitch Fix for--