Stitch Fix (SFIX) – Get Report shares fell Tuesday after Amazon.com expanded its personal shopping platform to include men’s fashion.
Stitch Fix recently traded at $27.07, down 1.56%. The stock has risen 5% year to date.
Amazon’s move is a direct shot across the bow at Stitch Fix, a titan in the online personal shopping arena. Amazon’s service is available on mobile devices only for U.S. Prime customers. It’s called Personal Shopper by Prime Wardrobe, and was introduced for women’s fashion in July 2019.
Customers pay $4.99 a month, and in exchange will receive a parcel every month of up to eight items. The package includes personalized clothes meant to meet their style and budget tastes listed in an introductory survey.
Shipping is free, and customers have a seven-day window for returns.
Stitch Fix’s pricing model is a $20 styling fee whenever a customer asks for a new bundle of clothing. That $20 is then credited toward their clothes purchases. The frequency of the packages depends on the customer.
For the quarter ended Aug. 1, Stitch Fix reported a loss of $44.47 million, or 44 cents a share, swinging from a profit of $7.18 million, or 7 cents, in the year-earlier quarter. Revenue rose 3% to $443.41 million from $432.15 million.