Stitch Fix (NASDAQ:SFIX) has reinvented online shopping, making it even easier. The company blends data science and the judgement of professional stylists to make personalized apparel recommendations for clients, helping them stay trendy and fashionable.
Since its 2017 IPO, the stock has surged 460%, easily outperforming the broad market and crushing the returns of competing retailers. Despite these incredible gains, investors haven’t missed their chance — here’s why Stitch Fix is still a buy.
What makes Stitch Fix different
The retail apparel market is highly competitive, and profit margins tend to be low. Brand popularity and fashion trends can be fleeting, often changing rapidly and without warning. This means decisions regarding new product lines and inventory involve a certain amount of guesswork. But Stitch Fix has a solution for these problems.
Unlike the vast majority of apparel retailers, Stitch Fix uses customer data to curate personalized