According to a report by McKinsey & Co., 15% of online shoppers have signed up for one or more services to receive products on a regular basis. Makes sense for Stitch Fix though. Exclusive Brands, or the company's private-label products, also remain an appealing opportunity, and in the first quarter the top sellers for both men and women were Exclusive Brands, another sign that the company's homegrown initiatives are paying off.Lake said Shop Your Looks has helped the company gain more non-apparel sales of products such as shoes, handbags, and accessories. Since Stitch Fix knows its frequent customers so well, it has a good sense of what they want, which allows it to recommend just 30 to 40 items rather than the world of clothes available online. Returns as of 07/29/2020.What's special about Shop Your Looks and the more general direct-buy program is that it fills a need that Stitch Fix had previously ignored. In its most recent letter to shareholders, the company said shoes, handbags, and accessories -- sometimes seen as impulse buys -- have represented less than 10% of fix revenue, but in the first quarter of fiscal 2020, these items accounted for more than 20% of Shop Your Looks revenue. The company on Thursday declined to reveal what impact "Shop Your Looks… Stitch Fix is getting to know its customers even better -- and showing it can offer more than a fix. Shop Your Looks may become a big revenue driver for the company; it gives customers more control, yet still offers the personalization they love.As for the shares, Wall Street predicts 15% upside from here. For instance, customers could search for an item the way they normally do online, by entering "black coat" or "skinny jeans" and getting an automatic recommendation or two based on their past purchases, saving them time and effort and eliminating the "paradox of choice" so common in online shopping.Importantly, Shop Your Looks has a distinct advantage over other online apparel sellers.
I'm now paying full price for items when before I was getting 25% off by buying most boxes Of these two, Shop Your Looks is the one to watch.On the call, Lake referred to this ability to curate for individual customers as the "promised land" of retail. She also worked at Mediabistro, and previously handled media relations for MSLGroup’s consumer practice.KeyBanc rates Stitch Fix stock overweight, but cut its price target to $34 from $40.KeyBanc Capital Markets analysts also think the program and similar direct-buy programs like “Shop New Colors,” which allows customers to buy new colors and patterns of previously-purchased items, could drive growth.On the topic of tariffs, Stifel analysts point out that Stitch Fix has been shifting its supply chain away from China in order to lessen the impact.Shop Your Looks allows consumers to buy items directly from the site.