Stitch Fix stock soars as "the Fix" makes a surprise comeback

Boho chic or athleisure grunge?... We're not so sure about the last one. Stitch Fix uses human stylists and algorithms to send you curated boxes of outfits each month. It had a major glow-up last quarter, after posting a $45M loss in the previous quarter. The stock shot up 40% on these stats:

• Sales jumped 10% from last year, and Stitch expects 20% to 25% growth for its full financial year (investors love to hear it).
• "Active clients" grew 10% to nearly 3.8M, and it notched a surprise profit.

"The Fix" is back... When we last checked in on Stitch Fix in September, customers were increasingly dropping "the Fix" box and ordering single items à la carte (like getting one spicy tuna roll vs. omakase). Not a great sitch for Stitch, since the subscription box is its real profit puppy and main value prop. Last quarter...

• The Fix made a comeback: First-time Fixes jumped 25%, while traditional retailers like Lord & Taylor and Francesca's filed for bankruptcy.
• The Fix got smarter: The recommendatiom algorithm that picks your outfits improved, leading to higher satisfaction and fewer returns (#datascience).