Stitch Fix, Inc. SFIX

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
40/100
Developing

About Stitch Fix, Inc.

Stitch Fix, Inc. engages in the provision of clothing and accessories in the United States. The company offers women's, men's, kids, petite, maternity, and plus apparel, and shoes, as well as personal styling services through its website and mobile application. Its products include denim, dresses, blouses, skirts, shoes, jewelry, and handbags under the Stitch Fix brand. The company was formerly … Full SFIX analysis →

Competitive advantage assessment

Key strengths

  • Revenue Growth Consistent Revenue growth volatility is low (stability score 0.76), suggesting sticky customer base.
  • Operating Leverage in Effect Operating leverage is evident (score 0.91), with margins expanding over time.

Key risks

  • ROIC Below WACC or Peers ROIC at 24.1th percentile suggests inefficient capital deployment.
  • Below-Peer Operating Efficiency Operating margin at 30.3th percentile indicates below-peer efficiency.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Developing
31

Where SFIX ranks in Apparel Retail

Stitch Fix, Inc. ranks #22 of 34 scored companies in Apparel Retail by moat score — the top 65%. The widest moat in the group is lululemon athletica inc. (LULU) at 83/100.

Moat scores for companies ranked near SFIX in Apparel Retail
# Company Moat score Rating
18 Lands' End, Inc. LE 48/100 Developing
19 Torrid Holdings Inc. CURV 46/100 Developing
20 Duluth Holdings Inc. DLTH 41/100 Developing
21 Foot Locker, Inc. FL 40/100 Developing
22 Stitch Fix, Inc. SFIX 40/100 Developing
23 Caleres, Inc. CAL 38/100 Developing
24 Citi Trends, Inc. CTRN 36/100 Developing
25 Zumiez Inc. ZUMZ 35/100 Developing
26 Cato Corporation (The) CATO 34/100 Developing

See every General Corporate company ranked by moat score →

How SFIX scores on the Corporate Default defenses

Pricing Power

Score 31 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 28 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 58 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 17 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 48 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 64 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding SFIX's moat

What is Stitch Fix, Inc.'s moat score?

Stitch Fix, Inc. (SFIX) scores 40 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as developing. It ranks #22 of 34 scored companies in Apparel Retail, the top 65%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 33 companies in Apparel Retail. Its strongest defense is Scale & Market Position (64/100) and its weakest is Capital Efficiency (17/100).

How does Stitch Fix, Inc. compare with other Apparel Retail companies?

Stitch Fix, Inc. ranks #22 of 34 scored companies in Apparel Retail by moat score. The widest moat in Apparel Retail is lululemon athletica inc. (LULU) at 83/100. The companies ranked closest are Foot Locker, Inc. (FL) at 40 just above it and Caleres, Inc. (CAL) at 38 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 33 companies in Apparel Retail. The defenses are then weighted to produce the overall score out of 100.

Why is Stitch Fix, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Stitch Fix, Inc.?

The Corporate Default template measures 6 defenses, and SFIX scores: Pricing Power (31), Cost Advantage (28), Customer Stickiness (58), Capital Efficiency (17), Resilience (48), Scale & Market Position (64). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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