Sew Repair Predicts “On a regular basis” Model and Purchasing Tendencies for 2022 in Inaugural Model Forecast Report

Reveals the pandemic’s impact on developing wardrobes when people conduct a closet clearance

– Two-thirds of Americans – and nearly 80% of millennials – say they intend to replace about a third of their wardrobe¹

– Almost a third of people would rather accept a 10% pay cut than dress for work every day, ¹ contributes to the rise of the new categories of business comfort and versatile athleisure

– Bold colors and patterns on the rise: Stitch Fix predicts Vibrant Magenta as the color of the year, with mint, mustard and purple also popular with women, while men turn to dusty lavender, dark green and coral. Color blocks, squares, and graphics are some of the most popular patterns

– Jeans are back – which is reflected in an increase in customer inquiries and sales from Stitch Fix. People are turning to more casual fits, with wide-legged sales up 70% year-over-year, while trends to “slim” are declining

– People are excited to get dressed up. 44% plan to replace their go-out clothing – 61% of Generation Z1 – as demand for special occasion clothing and high heels increases at Stitch Fix

– The vast majority (81%) of people would like a better way to find clothes that fit them and their lifestyle¹, suggesting that they need a more personalized shopping experience when they remodel their closets

SAN FRANCISCO, Dec 15, 2021 / PRNewswire / – Stitch Fix (NASDAQ: SFIX), the world’s leading personalized online shopping experience, today released its first Style Forecast highlighting key trends for 2022, including Business Comfort as the new workwear category, Growth in versatile athleisure styles, bold colors and patterns and the resurgence of categories such as jeans, heels and dresses. The report also highlights the frustrations people experience with traditional online shopping, such as:

The comprehensive Style Forecast integrates Stitch Fix sales and purchasing insights from 4.2 million customers and thousands of Stitch Fix stylists, combined with consumer surveys and industry data to give solid insight into real life trends – not just on the fashion catwalks . Stitch Fix has billions of style data points, gathered by advanced algorithms and data science teams, from detailed style feedback that customers choose to leave, providing a continuous impetus on what people buy how often and why would.

The story goes on

“From the very beginning, Stitch Fix has brought together advanced data science and a human touch to transform the way people find the clothes that help them look and feel good. From this data, we also gain insight into broader style trends in the marketplace and what motivates those trends – which has been particularly important in the past two years in order to steer changing consumer preferences at an uncertain time, “said Elizabeth Spaulding, CEO, Stichfix. “We hope the Style Forecast offers a fashion perspective beyond the runway trends to help people and our brand partners better understand what’s trending in everyday life as we head into the New Year and adopt a ‘new normal’ together. “

Below are notable results from the Stitch Fix Style Forecast 2022. To read the full report, visit StitchFix.com/StyleForecast.

The COVID closet clearance:

  • Two-thirds of consumers (67%) plan to replace a third of their wardrobe, 33% plan to replace at least half – and nearly 4 in 5 millennials (79%) are likely to refresh their wardrobe

  • Style preferences have changed: 58% of Stitch Fix Women’s customers and 53% of men said their looks changed during the pandemic and they expect those changes to continue in the near future.

Unexpected style influencers:

  • Amanda Gorman is the most unexpected style icon of 2021, as Stitch Fix customer requests for headbands have increased 600% year on year after putting on a statement headband at the inauguration – during Harry Styles is the most stylish celebrity of the year as inquiries mentioning the fashion icon rose 160% from 2020 after its “Love on Tour” shows launched.

  • Meanwhile, Stitch Fix customers are also turning to TikTok influencers for style advice: customer inquiry notes with “TikTok” are up 75% year over year, with some of the hottest looks including Y2K, Cottagecore and Dark Academia.

The color of the year is Vibrant Magenta:

  • Runner-up is purple, mint, and mustard for women – and dusty lavender, dark green, and coral for men.

  • More than a third (36%) of consumers say they will look forward to bright, saturated colors in 2022. Patterns – like color blocks, squares, and graphics – are also on the rise, with 25% of consumers planning to wear them more often. 1

Business comfort (not casual) is the future of workwear:

  • Almost a third (31%) of consumers say they would rather accept a 10% cut in their wages than dressing up for work every day.1 Almost 4 in 5 Americans (77%) have at least some business attire sworn off forever, 1 Almost half (45%) of the people wanted to do without business suits and a third (31%) wanted to do without suit pants. Over half (51%) of boomers say they will never wear a business suit again.

  • A new category that Stitch Fix called “Business Comfort” has emerged, proving that you can have style and comfort that are more sophisticated than the earlier “Casual” classification. This can be seen in oversized stretch blazers, elastic trousers, sweater dresses and new “Knoven” tops (knitwear + woven material).

Denim & dresses return to the daily wardrobe:

  • Jeans sales at Stitch Fix were up 30% year over year, and women’s wide leg sales were up 70%, while the skinny jeans growth rate declined over the same period after “toasting” on TikTok and a fashion trend over the winter “were heading towards style and comfort.

  • Everyday dresses are thriving too, and Stitch Fix has increased inventory by 40% year-over-year to meet demand. Top styles include maxi dresses, which have seen sales grow 60% year over year; Dresses made from natural fabrics such as linen, poplin, and gauze; and bright, upbeat colors and prints.

All-purpose athleisure & performance-oriented active:

  • Athleisure remains the fastest growing category of Stitch Fix, while performance-based active sales also rise (women 300% +, men 100% + YoY) as people discover new sports like tennis, golf, and hiking. Trendy styles in this category are skorts and skirts, bike shorts, hiking shorts and performance polos.

Increasingly on the move:

  • While workwear is all about comfort, more than half (55%) of consumers said they like getting dressed for going out, with 44% actively planning to replace their dressing gowns – 61% of Generation Z. 1

  • To support this, Stitch Fix’s sales in the special occasion category rose 50% year over year, suggesting that people are actually going out again. And fancy shoes grow faster – both boot and high heel sales rose about 70% year over year, while high boot sales rose 150% over the same period.

Offer a more personalized shopping experience

The vast majority (81%) of consumers say they want a better way to find clothes that fit them and their lifestyle. While eager to refresh their wardrobes, they still have huge frustrations with the typical online shopping experience – such as not knowing the fit before buying and scrolling for hours to find what they are looking for want. In the meantime, customer inquiries for sustainable and organic materials have increased by 22% since 2020, which indicates that consumers are placing increasing emphasis on social and ecological values ​​when shopping. The Style Forecast looks at the ability for retailers to offer the things that are most important to people in a shopping experience right now, such as:

Reporting methodology
The Stitch Fix Style Forecast leverages data collected from Stitch Fix’s 4.2 million customers and thousands of seasoned stylists and its merchandising team who review performance and feedback dashboards on a daily basis. Some of these metrics include: sales data; “Like / Love” value, a measure of customer feedback on certain points; “Success Rate” of the number of times an item is held in a fix (the curated selection of items that are delivered to customers); Customer profile data points; and Fix Request Notes, the note clients leave their stylist to indicate what they would like to receive in their next fix. Unless otherwise stated, all statistics on Stitch Fix sales and “Fix” inquiries refer to the calendar year 2021 to date, as of today November 30, 2021. Comparisons to the previous year relate to the 2020 calendar year from January 1, 2020 to November 30, 2020. Also cited is a survey of 1,000 nationally representative consumers aged 18 and over that was carried out by Wakefield Research for Stitch Fix, a survey of 2,000 nationally representative buyers aged 18 and over by OnePoll, market data from Coresight Research, industry trend sources such as WGSN and Trendalytics. All data is sourced from internal Stitch Fix resources unless otherwise noted. All sales data included refer to Stitch Fix sales unless otherwise stated.

About Stitch Fix
Stitch Fix is ​​the world’s leading personalized online shopping experience. Our unique business model combines the human touch of seasoned stylists with the precision of advanced data science. Since our inception in 2011, we’ve served millions of people as a trusted style partner, helping adults and children dress like their best selves every day. The Stitch Fix team is building a transformative and inclusive e-commerce model, an ecosystem of shopping experiences based on convenience and guided discovery that makes it radically easy and enjoyable for customers to discover and buy what they love. For more, visit https://www.stitchfix.com.

CONTACT: media@stitchfix.com

1 survey of 1,000 nationally representative US adults by Wakefield Research for Stitch Fix

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Hole (GPS) Q3 2021 earnings miss, cuts forecast

A Gap store in New York, August 2, 2020.

Scott Mlyn | CNBC

Gap Inc. Shares fell Tuesday after the company slashed its full-year outlook, falling short of fiscal third quarter results as Covid-related factory closings resulted in significant product delays in the quarter.

The stock lost about 16% on the news in extended trade recently, after rising about 16% year-to-date.

“We started the third quarter with increasing momentum, but acute headwinds in the supply chain hampered our ability to fully meet strong customer demand,” said Chief Executive Sonia Syngal in a press release.

Gap said it had invested in air freight to alleviate some of the challenges of port congestion over the holidays. However, this also means additional expenses that will affect profits in the short term.

For the three-month period ended October 30, Gap has performed compared to analyst expectations using refinitive data:

  • Earnings per share: 27 cents adjusted vs. 50 cents expected
  • Revenue: $ 3.94 billion versus $ 4.44 billion expected

Gap said it had risen to a net loss of $ 152 million, or 40 cents per share, on net income of $ 95 million, or 25 cents per share, the previous year.

Without an item, she earned 27 cents per share, according to Refinitiv, less than the 50 cents analysts were looking for.

Revenue decreased slightly from $ 3.99 billion a year ago to $ 3.94 billion. That fell short of expectations of $ 4.44 billion.

Supply chain problems will persist

CFO Katrina O’Connell said the backlog in US ports worsened significantly in the second half of this year, causing up to three consecutive weeks of unforeseen delays in Gap’s fall products.

While some of the disruptions are temporary, the challenges are likely to continue until early next year, she said.

Gap’s inventory levels decreased 1% year over year at the end of the third quarter and were unchanged from 2019. Gap expects inventory levels to grow in high single digits in the fourth quarter compared to last year.

“The situation in the supply chain remains volatile,” said O’Connell. “Newly opened Vietnam factories are on vacation.”

Lost revenue hurt Old Navy the most

Other clothing retailers including Victoria’s secret and Abercrombie & Fitchwho rely on Asia for production also said factory closures in Vietnam and clogged ports have resulted in their shelves not being as full as they would have liked in recent weeks.

Gap now expects full-year revenue growth of around 20%, which is less than the previous forecast of around 30%. Analysts surveyed by Refinitiv had expected an increase of 28.4% compared to the previous year.

Gap’s adjusted full year earnings expectations have been lowered to a range of $ 1.25 to $ 1.40 per share, from a previous range of $ 2.10 to $ 2.25 per share. Analysts had expected Gap to make $ 2.20 per share, Refinitiv said.

The company said its revised outlook includes about $ 550 million to $ 650 million in lost revenue due to supply chain restrictions and about $ 450 million in air freight costs for the year.

Old Navy has been disproportionately affected by supply chain delays, especially in the women’s range, Gap said. As a result, sales in the same stores decreased 9% year-over-year, but remained up 6% compared to 2019.

This is especially bad news for the company considering Old Navy has been a major growth engine for Gap over the past few quarters. It has made significant investments in Old Navy, including Revision of the plus-size clothing range. So slowing down at Old Navy is putting a bigger strain on the whole business.

For the Gap brand of the same name, sales in the same store increased by 7% compared to the previous year and by 3% compared to 2019. According to Syngal, the ongoing store closings have helped the brand experience healthier growth. Gap is also focusing on trimming back goods in the stores to keep the locations “brighter and brighter,” she said.

At Banana Republic, which is more focused on selling women’s workwear, sales in the same store increased 28% year over year and decreased 10% on a two-year basis.

Sales in the same store at Athleta, Gap’s rival Lululemon and Nike for women, increased by 2% compared to the previous year and increased by 41% compared to 2019.

A bright spot in Gap’s report was the apparel maker’s ability to increase its product prices. Gross margins were 42.1% for the third quarter, Gap’s highest rate for that period in 10 years. The company said the discount rate in the third quarter was also its lowest in five years.

The company is counting on that too a connection with rapper Kanye West’s Yeezy line will increase sales and attract new customers. On a phone call, Syngal said a Yeezy hoodie made the most sales in a day, online from a single item in Gap’s history.

Find Gap’s full earnings release here.

American Airways shares rise on service’s higher second-quarter forecast

American Airlines flight takes off from Miami, Florida.

Marco Bello | Reuters

American Airlines Shares rose after the airline forecast better revenue and a smaller loss for the second quarter than previously estimated, the latest sign of airlines recovering from travel expenses from the coronavirus pandemic.

The Fort Worth, Texas-based airline said Tuesday that it expects a “slight” pre-tax profit for the second quarter. It said it is expected to release results from a net loss of $ 35 million to a net income of $ 25 million for the three months ended June 30. Excluding net special items, it expects a net loss of up to $ 1.2 billion and a stock loss of between $ 1.67 and $ 1.76. That compares to analyst estimates of $ 2.44 per share.

“We are clearly moving in the right direction,” said CEO Doug Parker and President Robert Isom in an employee statement.

American stock was up more than 2% in early trading on Wednesday.

Air traffic has recovered strongly since the spring when Covid-19 Vaccines became widespread in the U.S., and officials lifted restrictions banning attractions from indoor restaurants to theme parks.

American said it flew 44 million passengers in the second quarter, an 82% increase from the first three months of 2021, albeit still below 2019 levels.

Revenue for the quarter ended last month was likely 37.5% below the same period in 2019 when it generated $ 11.96 billion, compared to an earlier estimate of a 40% decline.

American expects the daily cash build rate to be around $ 1 million per day, the first positive quarter since the pandemic began.

US airlines have at times struggled to meet the rapidly growing demand for travel.

As of March 2020, airlines have received $ 54 billion in federal payroll allowance in exchange for not laying off workers. This has contributed to staffing bottlenecks that have arisen in certain workgroups such as customer service reps and pilots.

Americans for his part cut his schedule for the first half of July by 1% and canceled flights in the last month partly due to a lack of trained and available pilots or other personnel.

“Restoring service this quickly in response to unprecedented growth in demand is incredibly complex,” write Isom and Parker. “But the Americans are facing the situation, and the results prove it.”

The airline is expected to release its quarterly results on July 22nd before the market opens.

IMF raises Center East progress forecast, restoration can be ‘divergent’

The International Monetary Fund has revised its growth forecast for the Middle East and North Africa upwards as countries rebound from the region Coronavirus Crisis that began in 2020.

Real GDP in the MENA region is expected to grow 4% versus the fund in 2021 October forecast of 3.2%.

However, the outlook will vary significantly from country to country depending on factors such as vaccine adoption, exposure to tourism, and policies in place, the IMF said in its latest regional economic report released on Sunday.

Vaccine is an important variable this year, and speeding up vaccination could add almost an additional percent of GDP in 2022.

Jihad Azour

Director of the IMF for the Middle East and Central Asia

Jihad Azour, director of the IMF’s Middle East and Central Asia division, said the recovery was “different between countries and uneven between different segments of the population”.

He told CNBC’s Hadley Gamble that growth will be mainly driven by oil exporting countries, which will benefit from the acceleration in vaccination programs and the relative strength of oil prices.

Vaccines an “important variable”

Azour said each country’s ability to recover in 2021 will be “very different”.

“Vaccine is an important variable this year, and accelerating vaccination could add almost an additional percent of GDP in 2022,” he said.

Some countries in the region – such as the Gulf Cooperation Council states, Kazakhstan and Morocco – started their vaccinations early and should be able to vaccinate a significant portion of their population by the end of 2021, the IMF said.

Other nations, including Afghanistan, Egypt, Iran, Iraq, and Lebanon, have been classified as “slow vaccines” that are likely to vaccinate a large proportion of their residents by mid-2022.

Shoppers in protective masks walk near the Dubai Mall and the Burj Khalifa skyscraper in Dubai, United Arab Emirates on Wednesday, January 27, 2021.

Christopher Pike | Bloomberg | Getty Images

The last group – the “late vaccinators” – are not expected to “achieve full vaccination until 2023 at the earliest,” the report said.

It added that early vaccines are expected to hit 2019 GDP levels in 2022, but countries in the two slower categories will recover to pre-pandemic levels between 2022 and 2023.

looking ahead

Azour said innovative guidelines have helped speed the recovery, but it is “very important to do better”.

This could include measures to improve the economy, attract investment, strengthen regional cooperation and tackle the scars of the Covid crisis.

“All of these elements are silver linings that can help accelerate the recovery and bring the region’s economy to levels of growth that existed before the Covid-19 shock,” he said.