For his "Executive Decision" segment of Mad Money Friday night, Jim Cramer sat down with Katrina Lake, CEO of Stitch Fix Inc. (SFIX) , the subscription clothing service that saw its shares initially plunge after it reported earnings and informed investors that it was continuing to invest in growth. The stock has since begun to recover as investors have taken a second look at the company's quarter.
Lake said that Stitch Fix has been profitable for more than five years, which has given the company the flexibility to reinvest in its business as well as expand into the U.K. and into children's clothing, all while remaining in the black. When asked about the effects of tariffs, Lake said they continue to diversify away from China, but as a full-price retailer, they have price flexibility to offset the increases from tariffs.
We looked at SFIX last week, concluding that, "Things are not fitting well for SFIX, technically speaking. Avoid for now." Let's take a quick look to see if anything has changed for the positive.
In this updated daily bar chart of SFIX, below, we can see that prices have touched the underside of the declining 50-day moving average line. The daily On-Balance-Volume (OBV) looks slightly firmer and the 12-day price momentum study shows a small bullish divergence. Not a lot to hang your hat on but we might want to check in on SFIX again later in the month.
Bottom-line strategy: Trades at $20.84 and $22.34 will strengthen the chart picture. Don't anticipate.