Diamonds and Dogs
Stitch Fix (SFIX) reported a profit. The clothing delivery company is jumping 15% to a two month high following better than expected earnings. Sales rose 29% to $409 million. Stitch Fix also raised guidance for the current quarter and the full year. The company grew active clients to 3.1 million, an increase of 17% year over year. At the same time, they continue to drive engagement with existing client base, growing revenue per active client 8% year over year. Cloths were one the few items you wanted to buy in person, but it looks like Stitch Fix is changing that as well.
Trade tensions hitting the transportation stocks. Railroad stock, Norfolk Southern (NSC) is down 2% on May transportation numbers. U.S. railroads originated 1.3 million containers and trailers in May, down 5.9 percent from May 2018. U.S. carloads fell 2.1 percent to 1.3 million carloads for that same time period. The current weakness in the rail traffic numbers is due to a combination of factors including flooding in the Midwest and trade-related tensions leading to reductions and or disruptions of international trade, and lower industrial output.
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