Opening The Box On Stitch Fix's Bull Case Amidst A Rocky Year

On this week’s The Razor’s Edge, we’re talking Stitch Fix. The e-commerce apparel retailer has had quite a six months – a strong earnings report in December sent shares higher, propelled perhaps by high short interest in the name. That high short interest took on rocket fuel in January amidst the Gamestop frenzy. The air came out of the shares, and then the company reported a weaker earnings in March. And then co-founder and CEO Katrina Lake announced she would step down as CEO in August. So a lot going on. The stock has passionate bulls and bears, and we try to sort out the bull case and whether it's a keeper. Topics Covered 2:45 minute mark – Daniel’s SFIX elevator pitch 6:00 – How to peg a valuation for a unique approach 12:00 – The value proposition and the edge 20:00 – Using (or misusing) the Netflix parallel 26:00 – Advantages from the back end side 34:00 – Is this changing the game in apparel 43:00 – The competitive threats that might come into play 49:30 – What to make of Lake stepping down and final notes