Stitch Fix, the online personal styling service company is set to report earnings after the bell this Thursday, March 8th.

SFIX shares are already trading more than 88% off of 2021 highs. Translation: the bar is very low. So what can investors expect?

Let’s dive in….

The company has been struggling in a space where competition is strong and where gross margins are slim, and we can see it in their price chart. 

Analysts are not expecting much either from these earnings: EPS is an estimated $-0.29 per share.
Another interesting thing was that on the prior earnings call, the company beat EPS and still sold off the next day. Not a great vote of confidence from the market...

And the data on the name is particularly worrisome as well.

We can see LikeFolio data show that Consumer Purchase Intent Mentions are down -47% YoY and -23% QoQ.

And when we look at comparisons to other notable competitors we can see that Stitch Fix is clearly lagging:

Nuuly and Rent The Runway have seen total mentions eclipse Stitch Fix as of lately... In addition, SFIX is falling behind on sentiment compared to the rest of the sector.

Bottom Line: LikeFolio is leaning bearish for this event due to SFIX's decline in consumer buzz and demand. Stitch Fix has battled supply chain issues and profitability, and also failed to capitalize on its Freestyle Service option. In contrast, rent-to-own peers are exhibiting relative strength. This isn't a name we are betting on.