Dick’s Sticks The Landing

The online personal styling business might’ve been a solid bet during the ZIRP era, but it has really taken a beating in the post-pandemic world. Today, we heard from Stitch Fix and ThredUp, battling for survival in the public markets. 📦

First up, Stitch Fix reported a $0.29 per share loss on $330.40 million in revenues. Both numbers missed estimates of a $0.22 loss and $330.88 million. Looking ahead, the company’s third-quarter revenue guidance of $300 to $310 million also missed expectations. 🔻

Investor relations departments are the silent heroes of a public company, receiving little recognition for the critical role they play. When they do receive a lot of attention, it’s generally not for good reason. That’s unfortunately what Lyft’s team is finding out today. 😵‍💫

After the bell, ridesharing company Lyft reported fourth-quarter results that were good, not great. But the stock immediately shot up and notched as high as a 60% gain before anyone realized what happened. Did the company just invent a cure for rare diseases? Are they pivoting to crypto or semiconductors? What was the cause of this?

The China trade remains a controversial one, with bulls looking to nail an epic bottom and bears looking for the collapse of the country’s stock market (and economy). However, despite all the crazy headlines about economic data, regulators banning short selling, and a whole lot more, some stocks are trying to stabilize. 📰

Today’s example is eCommerce giant JD.com, which reported an earnings and revenue beat after a long string of disappointments. While growth remains well off its pandemic-era highs, investors are happy to see that the business is at least stabilizing and being forecasted properly by management.

Once companies discovered that membership and loyalty programs drove additional customer visits and spending, there became apps for everything. Trust me, I’ve got the McDonald’s app on my phone because I get free fries or something with my occasional purchase… 📱

Nonetheless, this shit clearly works, and everyone wants a part of it. Given Target’s recent struggle, it’s not surprising that it’s jumping on the bandwagon as part of its turnaround strategy.