The Ratings Game: Stitch Fix is on a growth trajectory — here are two reasons why

Analysts say there are two key reasons why Stitch Fix Inc. is on a growth trajectory while others with similar business models may not be: its ongoing data collection efforts and the addition of new categories that take an increasing share of household spend.

Stitch Fix SFIX, +14.72% reported better-than-expected fiscal third-quarter revenue of $408.9 million, up from $316.7 million last year and ahead of the $395 million FactSet expectation. Earnings per share totaled 7 cents, compared with FactSet’s guidance for a loss. And the number of active clients, defined as those who checked out a “Fix” during the previous year, rose 17% to 3.1 million.

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