Huat77168
2022-09-20

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@yaodong：Stitch Fix Offering stylist-curated outfits by mail hasn't been a very good business model lately. Stitch Fix has posted four consecutive quarters of sharply decelerating revenue growth, clocking in with a decline in revenue in its latest report. This is horrible momentum heading into the fiscal fourth-quarter numbers that it will announce on Tuesday afternoon. If the business was slowing as we clawed our way out of the pandemic, how do you think Stitch Fix will hold up now that folks are spending less money outside of food essentials? The model has gone through some changes, but it can't seem to gain traction with poorly dressed folks who would appreciate having fashionistas on their side. The balance sheet is still in decent shape, but analysts don't see Stitch Fix turning a profit until at lest fiscal 2027. With the model being upended, it's hard to picture anything positive emerging out of this week's financial update. 2. Lennar Stitch Fix isn't the only company reporting what could be problematic quarterly results. A couple of homebuilders will be reporting results on Wednesday, and Lennar is one that could disappoint the market. The Florida homebuilder has feasted from the red-hot housing market that has been particularly scintillating in the Sunshine State. The near-term outlook won't be so great. Borrowing costs are rising. The inventory of available homes across the country is shooting higher. Sellers are slashing their asking prices. All three of these new realities will eat into Lennar's business. The single-digit trailing-earnings multiples you see across the industry are a facade. Analysts already see Lennar's revenue and earnings per share declining 7% and 11%, respectively, next year. It could be a lot worse than that if the real estate market continues to go the wrong way. This week's report might not be horrible, but its guidance should be cautious -- and that could be enough to spook investors.
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