Stitch Fix (SFIX) could post a "slight" fiscal Q4 sales miss, despite data pointing to solid sales trends during the period, UBS Securities said in a Tuesday note.
UBS said its checks indicated positive sales trends in fiscal Q4 and Q1 to date, with the brokerage estimating a fiscal Q4 sales growth of 4.1% year on year and a $0.05 loss per share. The brokerage attributed the anticipated sales growth to stronger customer awareness and interest, backed by web traffic and followers trend on Instagram.
Stitch Fix is also positioned to issue an upbeat outlook on fiscal 2027 revenue and adjusted earnings before interest, taxes, depreciation, and amortization, UBS said. However, downside risks remain, related to higher promotional activities and negative active client growth, the brokerage noted.
UBS has a neutral rating on Stitch Fix, with a lower price target of $4 from $4.50.
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