Folks,
I would never dare speak for the boss, but I can feel a great big loud all-caps hammer coming down telling us to shut down this basically off-topic thread.
Stitch Fix is simply not a “Saul” stock because it is an investment based on assumptions and predictions about growth that may or may not come, whereas all the of the stocks here, as far as my math-challenged brain can tell, are based on accelerating excellence that is happening now.
I have gone up against the collective on ANET and NTNX and both times got my chumlies handed to me. Same with OLLI.
Tinker -
I will only say - in my hometown of Evanston IL - there’s been a lot of stores closing - The Gap, Radio Shack (no really), a used book store, and beloved little shoe store, and I think at least 3 maybe 5 women’s clothing stores. This could be due to our “People’s Republic” having too high taxes, bad parking, but maybe this has influenced me. All we have now are basically restaurants, bars and coffee shops opening up inside coffee shops.
It just seems like common sense to me that if you were building a clothing store today, you’d have huge warehouses, killer apps, and ship to all parts of the country/world, not create big, expensive retail locations.I must confess I’m utterly blown away that Jos S Bank is thriving - never would have dreamt selling 10 suits, 43 ties and six mankerchiefs for a pittance is a legit thing.
Trying My Best
Here’s a link to the leadership…
https://www.stitchfix.com/about
It’s pretty much all Stanford folks and the COO is from Wal-Mart.com, board looks exceptional as well. They also are extremely diverse which is probably more important to next gen than white I am assuming are mostly middle-aged white men here. I could be wrong on that!
Bottom Line:
To quote Bugs Bunny, this is a dogpile on the rabbit situation, where a perfect storm - global pandemic, market crash on day of ER disappointment, even Brexit weighing hard on stock. I get that negative sentiment is running very high. But a week ago this was a stock rising from 18 to 28 and looking very much ready to break out.
On moats - I think many people grossly misunderstand the concept of a moat. If you have name recognition, a trusted brand, massive infrastructure (engineers, warehouses, data mining) it is going to be extremely hard for another player to muscle you out. Obviously Amazon can do it but they can do literally anything. It is a tremendous investment to try to recreate this company. That’s a moat friends.
I respect the stay-away camp on this. But since it is not a Saul stock, I shall say no more, beyond this: I own it, I believe in it and I’m riding it to a 10B valuation and beyond or bust. I believe what we have here is early-stage visionary greatness that will win big in the end. And lastly, to throw a molotov cocktail on the way out. I’ll bet 8 out of 10 folks here are men. And simply don’t appreciate the value-add here the way busy working moms do.
Much love!
Fool On,
Broadway Dan