June 06, 2018

What "Perspective" Looks Like

I've shown you what bad performance (Macy's, JCP) looks like.

I haven't shown you what good performance looks like.

Here are half-year results from Stitch Fix for the past two years.

  • 2017 Net Sales = $474 million, Pre-Tax Profit = $25 million.
  • 2018 Net Sales = $591 million, Pre-Tax Profit = $36 million.
  • Won-Lost Record = 11-5.
Lots of sales growth.

Decent (but not great) pre-tax profit rates (which drag the 11-5 down from the 13-3 or 14-2 that is "could" be).

Long-term catalogers should look to Stitch Fix as a target ... this is what is possible. This is what winning looks like.

Will Stitch Fix win forever? Heck no! There will be a day when it all comes crumbling down. But for now, this is your target. You probably won't achieve sales growth like this. You can certainly achieve better pre-tax profit performance.

Email Marketing and Discounts

It comes up over and over again. The email marketing team wants to maximize open rates (not profit, mind you, open rates). How does one...