She still has the magic touch — though that might be putting it mildly.
Stitch Fix’s share price hit $29 on Wednesday (June 20), jumping 14 percent and reaching a 52-week high “on speculation via social media that media mogul Oprah Winfrey would be taking a stake in the subscription box company,” according to CNBC.
More than half of those gains were lost, though the retailer’s stock opened at $27.46 on Thursday (June 21).
And, as of Thursday morning, the Oprah story seemed destined for the too-good-to-be-true file. According to the CNBC report, “a representative for Winfrey later told Bloomberg the speculation wasn’t true.”
Stitch Fix declined comment.
The profitable power that followed the Oprah speculation was a reasonable response. That’s because, as the report put it, after she become a brand ambassador for Weight Watchers, a role that includes commercials and other marketing, shares for the company “have accelerated tremendously in recent months and are up more than 230 percent from a year ago.”
Stitch Fix hasn’t exactly been suffering with investors lately, as its “stock has been on a tear of late as the platform has been growing its active user base and growing its bench of retail executives. The company also recently rolled out a line for kids apparel, expanding beyond those for women and men,” the report said.
The online style subscription service has 2.5 million clients — a 31 percent boost from the same period last year, according to the merchant’s second quarter financial report in March. Although its revenue for the second quarter beat expectations, the company still saw its shares fall 6 percent after releasing those figures, which showed earnings that fell short of analyst anticipation.
But the company did bring in $295.9 million in revenue in the second quarter, 24 percent more than last year. Stitch Fix launched its IPO in November 2017.