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SFIX (Stitch Fix) Degree of Operating Leverage : 5.06 (As of Apr. 2025)


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What is Stitch Fix Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Stitch Fix's Degree of Operating Leverage for the quarter that ended in Apr. 2025 was 5.06. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Stitch Fix's Degree of Operating Leverage or its related term are showing as below:

SFIX's Degree of Operating Leverage is ranked worse than
75.69% of 1094 companies
in the Retail - Cyclical industry
Industry Median: 1.295 vs SFIX: 5.06

Stitch Fix Degree of Operating Leverage Historical Data

The historical data trend for Stitch Fix's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Stitch Fix Degree of Operating Leverage Chart

Stitch Fix Annual Data
Trend Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only -37.61 0.99 -48.13 0.75 0.88

Stitch Fix Quarterly Data
Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.72 0.88 1.09 1.96 5.06

Competitive Comparison of Stitch Fix's Degree of Operating Leverage

For the Apparel Retail subindustry, Stitch Fix's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Stitch Fix's Degree of Operating Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Stitch Fix's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Stitch Fix's Degree of Operating Leverage falls into.


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Stitch Fix Degree of Operating Leverage Calculation

Stitch Fix's Degree of Operating Leverage for the quarter that ended in Apr. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -69.587 (Apr. 2025) / -114.482 (Apr. 2024) - 1 )/( 1275.494 (Apr. 2025) / 1382.657 (Apr. 2024) - 1 )
=-0.3922/-0.0775
=5.06***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Stitch Fix  (NAS:SFIX) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Stitch Fix Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Stitch Fix's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Stitch Fix Business Description

Traded in Other Exchanges
Address
1 Montgomery Street, Suite 1100, San Francisco, CA, USA, 94104
Stitch Fix Inc offers personal style services for men and women. The company engages in delivering one-to-one personalization to clients through the combination of data science and human judgment. It provides a shipment service called A FIX where the stylist's hand selects items from several merchandise with analysis of client and merchandise data to provide a personalized shipment of apparel, shoes, and accessories suited to the client's needs. The company offers products across categories, brands, product types, and price points including Women's, Petite, Maternity, Men's, and Plus. It also offers various product types, including denim, dresses, blouses, skirts, shoes, jewelry, and handbags and sells merchandise across various ranges of price points.
Executives
Casey O'connor officer: Chief Legal Officer C/O STITCH FIX, INC., 1 MONTGOMERY STREET, SUITE 1500, SAN FRANCISCO CA 94104
Katrina Lake director, officer: Chief Executive Officer 111 W. WASHINGTON STREET, SUITE 2100, CHICAGO IL 60602
Matt Baer director, officer: Chief Executive Officer C/O STITCH FIX, INC., 1 MONTGOMERY STREET, SUITE 1100, SAN FRANCISCO CA 94104
Sarah Barkema officer: Chief Accounting Officer C/O STITCH FIX, INC., 1 MONTGOMERY STREET, SUITE 1500, SAN FRANCISCO CA 94104
David Aufderhaar officer: Chief Financial Officer C/O STITCH FIX, INC., 1 MONTGOMERY STREET, SUITE 1100, SAN FRANCISCO CA 94104
Kofi Owusu Amoo-gottfried director C/O VITAL FARMS, INC., 3601 SOUTH CONGRESS AVENUE, SUITE C100, AUSTIN TX 78704
J William Gurley director, 10 percent owner 2480 SAND HILL ROAD, SUITE 200, MENLO PARK CA 94025
Sachin Dhawan officer: Chief Technology Officer C/O BLACKHAWK NETWORK HOLDINGS, INC., 6220 STONERIDGE MALL ROAD, PLEASANTON CA 94588
Working Capital Advisors (uk) Ltd. 10 percent owner QUERIPEL HOUSE, UNIT 2, 1 DUKE OF YORK SQUARE, LONDON X0 SW3 4LY
Kirsten A. Lynch director 390 INTERLOCKEN CRESCENT, BROOMFIELD CO 80021
Mikkel Svane director C/O ZENDESK, INC., 989 MARKET STREET, SUITE 300, SAN FRANCISCO CA 94103
Neal Mohan director C/O STITCH FIX, INC., 1 MONTGOMERY STREET, SUITE 1500, SAN FRANCISCO CA 94104
Elizabeth Goodman Williams director C/O VIANT TECHNOLOGY INC., 2722 MICHELSON DRIVE, SUITE 100, IRVINE CA 92612
Mike C. Smith officer: Chief Operating Officer STITCH FIX, INC., ONE MONTGOMERY STREET, SUITE 1500, SAN FRANCISCO CA 94104
Dan Jedda officer: Chief Financial Officer C/O STITCH FIX, INC., 1 MONTGOMERY STREET, SUITE 1500, SAN FRANCISCO CA 94104