According to Zhitong Finance APP, Stitch Fix (SFIX.US) has reached a new high in stock price in over two years, thanks to the company's updates to its Outfits and improvements in customer experience, enhancing the company's profit outlook. Driven by this Bullish news, Stitch Fix's stock price closed up more than 44% from the previous trading day, marking the best performance in the stock's history. The company's CEO, Matt Baer, stated during the Earnings Reports conference call that the company expects revenue to return to growth by the end of fiscal year 2026 and is currently on a successful transformation path.

By improving inventory management and personalized marketing strategy, Stitch Fix successfully increased customer traffic, narrowing its third-quarter loss per share to $0.05, outperforming Wall Street's expectation of $0.09, while the revenue forecast for fiscal year 2025 also exceeded market expectations. This rise in stock price also boosted the prices of its competitors The RealReal (REAL.US), ThredUp (TDUP.US), and Revolve (RVLV.US).

Despite the significant increase in stock price on Wednesday, considering the high valuations relative to free cash flow and ongoing risks from competitors, Stitch Fix's stock price may face profit-taking pressure on Thursday. Seeking Alpha Analyst Michael Wiggins De Oliveira gave Stitch Fix a neutral rating, pointing out that the company faces high operational costs and changing customer acquisition dynamics, while competitors like Amazon also offer similar services.

However, De Oliveira also mentioned the positive aspects, noting that Stitch Fix is debt-free and holds about $0.25 billion in Cash / Money Market, making up 30% of its Market Cap. He stated that he currently prefers to wait on the sidelines, as the balance between potential returns and risks feels even.